Tariff negotiations between Japan, South Korea and the United States may be in a tug-of-war!

According to the latest news, U.S. Commerce Secretary Lutnik warned that tariff negotiations between the United States and Japan and South Korea will take a lot of time and the agreement will not be reached soon.

The U.S. and the United Kingdom reached a trade deal on Thursday as Lutnik made the remarks. However, many details of the agreement are yet to be finalized, and the so-called "reciprocal tariff" that the US previously imposed has not been cancelled. The New York Times said the agreement reached between the United States and Britain looked more like a framework agreement than a complete trade agreement.

Matthew Ryan, head of market strategy at Ebury, noted that so far, the UK financial markets showed little signs of ecstasy, which is enough to show how investors view the deal. This is far from a comprehensive trade agreement and it can take months or even years to finalize.

U.S. Secretary of Commerce issued a warning

Beijing time, May 9, Lutnik said that the trade agreement with South Korea and Japan may take longer than the framework agreement reached by Britain and the United States on Thursday.

"You have to spend a lot of time dealing with Japan and South Korea. These deals will not be reached soon," Lutnik added. India is also "working very hard" to reach an agreement and may become one of the next countries to reach an agreement. But he warned that it was a difficult job.

"When it comes to India, for example, under the agreement, it may require modification or adjustment of 7,000 tariffs, which will take time and effort - so give us a chance and don't urge you."

Meanwhile, Lutnik said he hopes the initial agreements can be used as templates for various regions, showing what kind of concessions Trump hopes the other party will reduce tariffs.

The U.S. Commerce Secretary, who plays a leading role in trade negotiations, said Trump's 10% baseline tariffs remain the "bottom line", but many countries will face higher tariffs unless they actively open up their economies. He also said countries may see how Trump reduces industry tariffs on products such as cars and metals from the UK agreement.

Previously, after two rounds of tariff negotiations between the United States and Japan, the United States' measures to impose a 25% tariff on key auto parts officially took effect on May 3. In response, Japan continues to express strong opposition to the US tariff policy.

Japanese Prime Minister Shigeru Ishiba said on the 3rd that it was very regretful that the United States began to impose a 25% tariff on key auto parts on that day and would continue to ask the United States to re-examine the relevant tariff measures. Japanese Economic Regeneration Minister Ryomasa Akazawa, who participated in the negotiations, also expressed that Japan expressed concern and would continue to strongly demand that the US cancel these tariffs.

Japan's Toyota Motor Company predicted on May 8 that due to a series of tariff policies of the US government, its net profit in fiscal year 2025 (April 2025 to March 2026) will shrink by 34.9% year-on-year. Toyota said that relevant US tariff policies have had a significant negative impact on corporate performance. It is expected that Toyota will lose sales of up to 180 billion yen (about 1.25 billion US dollars) in April and May this year. In addition, rising raw material prices have also brought great pressure to corporate operations.

It is worth noting that the EU will prepare countermeasures against US tariffs. According to CCTV News, the European Commission launched public consultation on the list of goods that counter US tariffs on the 8th. At the same time, the EU will file a lawsuit against the WTO for the United States' "reciprocal tariffs" and tariff policies on automobiles and parts. The EU pointed out that if the negotiations with the United States fail to reach a mutually beneficial outcome and prompt the United States to cancel tariffs, the EU may take countermeasures against these U.S. imported goods.

According to a press announcement released by the EU, the consultation aims to deal with the "universal tariffs" imposed by the United States and tariffs on vehicle and parts. The consultation will be open until June 10, involving 95 billion euros of products imported from the United States, mainly covering industrial and agricultural products.

Many details of the U.S.-U.K. trade agreement are yet to be finalized

According to Xinhua News Agency, Trump announced at the White House on the 8th that the United States and the United Kingdom have reached a new trade agreement, partially withdrawing tariffs in specific areas, and further expanding market access to products from both sides. However, many details of the agreement are yet to be finalized, and the so-called "reciprocal tariff" that the US previously imposed has not been cancelled.

The New York Times reported that the agreement reached between the United States and Britain looked more like a framework agreement than a complete trade agreement. The two sides agreed to cancel tariffs on some specific commodities and reach a general consensus in other areas, but government officials of the two countries still need to meet in the next few months to finalize specific terms.

Tim Meyer, professor of international trade law at Duke University’s Law School in the United States, said the agreement has limited impact from the market perspective and from the perspective of those who are concerned about the U.S. economy. Obviously, this is just a framework, not actually a protocol.

“It’s neither comprehensive nor complete,” said Joe Brusuelas, chief economist at RSM, in an article. “This does not provide the necessary clarity to remove the fog of uncertainty caused by the trade war.”

“The vast majority of the most important fact about today’s trade deal is that 10% of the total tariffs remain,” Justin Wolfers, professor of economics at the University of Michigan, said in an article on social media X. “Minor adjustments with some trading partners won’t change that. For the foreseeable future, the United States is a high-tax country and the trade war continues.”

Analysts say the scope of the U.S.-UK trade agreement is limited and still maintains a 10% "reciprocal tariff." "The agreement (or rather it didn't) is not very important and does not necessarily feel that negotiations with other countries are expected to achieve more substantial results," Commerzbank analyst Volkmar Baur said in a note.

Other media commented that the framework agreement reached with the UK is likely to herald what the agreement reached with other countries such as India, Japan and South Korea might look like. But no matter what consensus the United States reaches with these countries, it seems unlikely to become a strong trade deal now, but just an outline for further negotiations with these countries.

Even the White House's repeated attitude has made the market more suspicious of the prospect of a comprehensive trade deal. Just one hour after the British government announced that the U.S. would exempt steel and aluminum from the UK, the White House said it would negotiate alternative arrangements for metal tariffs.

The EU representative, who is negotiating with the United States, also has great opinions on the White House's cheating attitude. According to EU officials, the two sides have not found a consensus because the United States has been changing its focus, which is ridiculous.

There are also people who metaphorically say that the negotiation strategy of the United States is like they throwing the stinky fish on the table and saying that they can take the fish away by paying, and in the end they only take the fish head and leave everything else behind. The United States has only opened up some of the negotiation space for tariffs, which is extremely unfavorable to constructive negotiations.

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