Trump's Expansive Definition of Trade Deals Sparks Confusion

The Trump administration's concept of trade deals has evolved, raising questions about the nature and substance of these arrangements as they approach new tariffs.

President Trump continues to redefine the term “trade deal,” using it to describe a variety of international agreements that range from comprehensive contracts to minimal arrangements. In a cabinet meeting at the White House on Tuesday, he suggested a willingness to negotiate with major trading partners as the August 1 deadline for increased tariffs approaches.

Traditionally, trade deals are extensive documents that can span hundreds of pages and take years to hammer out. However, Trump’s interpretation of the term encompasses a variety of arrangements that appear more one-sided and informal. For example, he referred to a framework deal with the United Kingdom, which was unveiled in May. This deal consisted of only a few pages outlining commitments that are still expected to undergo further negotiation.

Additionally, last week Trump announced a handshake agreement with Vietnam, declaring it a “Great Deal of Cooperation” on his Truth Social platform. This agreement purportedly aims to lower tariffs on Vietnamese goods to 20 percent. However, the details of this agreement have yet to be publicly shared, raising skepticism about its significance.

Trump's administration has also included a June truce with China, which he has labeled a “trade deal,” though the agreement merely involved a mutual decision to reverse previously imposed tariffs and other retaliatory measures. Essentially, this truce restored relations to their earlier state without altering any trade rules.

In recent remarks, Trump has also categorized unilateral tariff notifications sent to various countries via his social media as “deals,” despite those nations not having consented to these terms. This evolving language indicates a departure from traditional notions of trade agreements and highlights the unconventional approach taken by the Trump administration in international trade relations.