Trump's trade strategy shows signs of success, according to Larry Kudlow
In 2025, President Trump's trade strategy continues to reshape the global trading landscape, with trade negotiations with China remaining tense but seeing a temporary extension of the tariff truce for another 90 days [1][2][4].
The President has been depicted as a strategic negotiator, knowing when to 'thrust' and when to 'parry.' He has threatened to increase baseline reciprocal tariffs to 15–20%, affecting all Chinese goods, including those from Hong Kong and Macau, with some tariff exemptions revoked recently [1][4].
A tariff truce extension of 90 days was agreed upon in late July 2025 during talks in Stockholm, signaling no breakthrough but a continuation of dialogue [2][4]. A preliminary agreement reached in June 2025 eased Chinese restrictions on rare earth exports and included some U.S. tariff relief, but broader issues remain unresolved [3]. Trump issued executive orders recently reinforcing tariffs and removing some duty exemptions on Chinese goods imported through postal networks [1].
Meanwhile, the U.S. is seeking to strengthen partnerships with third countries beyond bilateral China talks to reshape global trade influence. Analysts suggest that the U.S. may be negotiating or planning to negotiate with the European Union, United Kingdom, Vietnam, Japan, Philippines, and Indonesia to align trade relationships [2]. However, the current detailed bilateral trade negotiation status under Trump's 2025 trade strategy is not explicitly noted in the available information.
The WTO and other multilateral globalist institutions have failed to create a fair and balanced trading system, according to critics. President Trump prioritizes America's interests above all else, and his approach as the 'dealmaker in chief' has been a source of both controversy and admiration.
Despite concerns over tariffs from people on the left and some on the right, tariff retaliations have not occurred, and there is no world trade war currently. The significant amount of foreign direct investment, estimated to be around $5 or $6 trillion, is expected to flow into the U.S. economy, offsetting any potential deflation due to the implementation of tariffs.
The EU deal is an example of President Trump's trade strategy working, as it has yielded approximately $400 billion per year in tariff-related revenues [1]. The U.S. continues to maintain a firm stance on trade, with Trump charging a template of a modest 15% toll for most of these deals [1].
[1] CNN Business [2] The New York Times [3] The Wall Street Journal [4] The Washington Post
- The tariff truce with China, extended for another 90 days, reflects the ongoing negotiations under President Trump's trade strategy in 2025.
- The President's strategic negotiating style, exemplified by his threat to increase tariffs to 15–20%, fuels debates about the economy and politics.
- The reviewed tariff exemptions on Chinese goods imported via postal networks, as per Trump's executive orders, generate revenue for the U.S. treasury.
- As the global trading landscape shifts, the U.S. is bolstering partnerships with countries like the European Union and Japan to rebalance global trade influence.
- Concerns over potential deflation due to tariffs are overshadowed by the anticipated foreign direct investment flow into the U.S. economy, estimated to be around $5 or $6 trillion.
- Tariff-related revenues, such as the $400 billion per year from the EU deal, testify to the effectiveness of President Trump's trade strategy in shaping the finance, business, and general-news landscape.
