Global Trade Partners Fume as US Drags Feet on Tariff Relief—Patience Wears Thin in 2025

Tariff tensions hit boiling point as Washington's inaction sparks global frustration.

Diplomatic gridlock: Allies and competitors alike are tapping their watches—US trade policy remains stuck in neutral.

Economic dominoes: Every delayed decision ripples through supply chains, with manufacturers and consumers footing the bill. Classic case of political theater costing real money.

What's next: Either the White House finds its checkbook or trading partners start writing their own rules. Either way, Wall Street will still take its cut.

EU and others demand swift tariff relief

The EU is stuck in a very similar bind. Deal or no deal: Ursula von der Leyen, European Commission President, shook Trump’s hand on a 15% tariff cap in Scotland last July, and Brussels recognised that the cap would shrink cars too.

Yet the reality looks different. However, US tariffs of 50% on EU steel and 25% on autos remain. German carmakers are sounding alarms. So far, the agreement has brought no clarity or relief to the German car makers, said Hildegard Müller, president of Germany’s auto trade body VDA. It’s costing them, she said, billions.

Japan and Korea signed with Washington in July. Auto tariffs will be reduced to 15% , and steel duties will be cut, it was said. Cars get different treatment, with a 25% auto tariff still hitting Japanese and Korean automakers.

Japan’s top trade negotiator, Ryosei Akazawa, said: “We’re still seeing an impact; the bleeding has not stopped. Freed said he believes one Japanese automaker is taking the hit to nearly ¥100 million ($680,000) per hour due to the tariff weight.

South Korea is among those pushing for relief. Bloomberg Intelligence estimates that Hyundai and Kia could incur up to $5 billion in additional expenses this year. The squeeze on margins and weakening global demand have also made the 15% tariff bite.

US hints at more tariffs to come, Canada imposes D.C. tariffs

Instead of easing duties, Washington has been trending in the opposite direction; rather than lifting duties, the latest moves slap additional tariffs on Chinese imports. The MOVE came just weeks after Washington expanded the list of tariffs to nearly 300 new steel and aluminum product codes, covering 50% US tariffs, on August 15. That expansion took effect immediately.

The shake-up has angered partners who are hoping for concessions. EU officials have blamed disagreements over digital trade rules for a hold-up in the promised joint statement with Washington. Those countries, Japan and South Korea, have been waiting for executive orders to seal the tariff relief.

Critics have begun to question Washington’s commitment. Cecilia Malmström, the EU’s former trade commissioner, said that permanent delays must be avoided to prevent the process from becoming endless negotiations and excessive filibustering.

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