The Trump administration launches new trade negotiations: 20 countries' tariff strategies, divergence in Fed's inflation policy, and Mexico's lawsuit against Google

In May 2025, the Trump Administration initiated a new round of trade negotiations, focusing on approximately 20 economies and establishing a 10% minimum tariff floor. U.S.-China relations are still stuck in a high-tariff stalemate, with both parties set to meet in Geneva. The Federal Reserve is experiencing a division over inflation control strategies, with Chairman Powell emphasizing the importance of observing economic trends before making any decisions. Mexico sued Google for labeling the "Gulf of Mexico" as the "American Gulf" on Google Maps, alleging it of ignoring multiple requests and causing diplomatic tensions following a U.S. congressional resolution.

Trump Administration Initiates Multilateral Trade Talks, Sets 10% Minimum Tariff Threshold

The Trump administration has recently launched a trade negotiation plan involving about 20 economies, aiming to establish a replicable agreement template to facilitate future expansion of negotiation frameworks. According to Bloomberg, the United States Trade Representative (USTR) has briefed Congress on the first wave of negotiation targets, including countries and regions such as China, Switzerland, Australia, Argentina, Cambodia, Ecuador, Indonesia, Israel, Malaysia, Madagascar, and Taiwan, and has begun informal consultations with countries like Brazil and the Philippines.

U.S. Treasury Secretary Scott Bessent stated that these negotiations will be used to establish a framework model for future trade agreements. Commerce Secretary Howard Lutnick noted that the White House hopes to quickly reach agreements with smaller economies as a reference for negotiations with other countries.

President Trump has made it clear that all countries will face a 10% basic tariff, and even if a trade agreement is reached, tariffs will not be completely waived. However, he is open to "exceptions" if a country demonstrates "special measures" towards the U.S., which could be considered for exemption.

Currently, the U.S. has made preliminary progress in negotiations with the UK, India, Vietnam, and Cambodia. For example, with the UK, a preliminary agreement has been reached to reduce U.S. tariffs on British car imports from 27.5% to 10% and to eliminate tariffs on British steel. In response, the UK agreed to lower beef import and export tariffs to near-zero levels.

U.S.-China Tariff Negotiations to be Addressed Separately, 145% High Tariff May Drop to 80%

Negotiations with China are being treated independently. Trump recently stated on Truth Social that reducing the current 145% tariff on China to 80% "seems reasonable," but the final decision will be led by Treasury Secretary Bessent and Trade Representative Jamieson Greer. Representatives from both sides are expected to meet this weekend in Geneva, Switzerland.

Despite Trump's tough stance on China, he also mentioned "we'll see," suggesting there is still room for negotiation. White House economic advisor Kevin Hassett revealed that more than 24 trade agreements are nearing completion, raising market expectations for a policy shift.

Internal Fed Disagreement on Inflation Control Strategy

While the Trump administration pushes for high tariff policies, there is a clear division within the Federal Reserve on how to address inflationary pressures. Federal Reserve Board Member Kevin Warsh questioned in a speech at Stanford University's Hoover Institution whether it is truly necessary to sacrifice employment to curb inflation. He pointed out that current policies might be overly conservative and suggested reevaluating the balance between inflation and employment.

In contrast, Federal Reserve Board Member Christopher Waller emphasized the importance of central bank independence and institutional stability. He stated that the Fed's design transcends presidential terms to avoid monetary policy being subject to political interference. He called for maintaining the current system to ensure economic stability and anchor inflation expectations.

Fed Chairman Jerome Powell stated at a press conference that the current economy faces the dual risks of high inflation and high unemployment, and the Fed will adopt a "wait and see" strategy, observing economic trends before making decisions. He emphasized that despite Trump's pressure to cut interest rates, the Fed will not change its policy direction due to political pressure.

Mexico Sues Alphabet, Google's Parent Company, Over Map Labeling Dispute

On the geopolitical front, the Mexican government has recently filed a lawsuit against Alphabet, Google's parent company, due to Google labeling the "Gulf of Mexico" as the "Gulf of America" in Google Maps for U.S. users. Mexican President Claudia Sheinbaum stated that this naming change has crossed our line and accused Google of ignoring multiple requests from the Mexican government.

According to reports, the Mexican Ministry of Foreign Affairs has repeatedly written to Google, requesting it to maintain the original name, but Google responded that its naming policy is based on the U.S. Geographic Names System and emphasized that its map labeling policy is consistent globally. Google Vice President Cris Turner replied in February that the company would not change its naming conventions.

The background of the incident also includes the U.S. House of Representatives passing a resolution on May 8, officially adopting "Gulf of America" as the name used by federal agencies. The resolution was passed under Republican leadership, with only one Republican voting against it. This move has caused strong dissatisfaction in Mexico and further heightened diplomatic tensions.

The Trump administration launches new trade negotiations: 20 countries' tariff strategies, divergence in Fed's inflation policy, and Mexico's lawsuit against Google

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