Third-Country Agreements on Reciprocal Trade Aim to Counter China

Key Takeaways

• The Trump administration is using bilateral agreements on reciprocal trade to counter China’s global economic influence.
• Some provisions grant the United States broad discretionary power to penalize partners for engagement with China deemed to threaten US interests, while others encourage cooperation on economic security issues.
• The agreements increase tariff uncertainty in third markets, especially as China pushes parallel trade efforts in Southeast Asia and Latin America.