Protecting policies related to import tariff margins and managing the transfer pricing process of international joint ventures is the responsibility and authority of the government’s senior management and leadership. Recently, US President Donald Trump has implemented a series of policies and decisions on tariffs to protect the trade balance between the United States and its trading partners.
Establishing a suitable and balanced position for organizations or countries participating in exporting to the US market at each stage is also a macroeconomic and microeconomic management strategy of the President. Currently, the United States is still negotiating with all trading countries. However, if these negotiations are prolonged, they may cause a decline in the consumption behavior of US citizens.
If this consumer behavior threshold is exceeded in the near future, manufacturing stagnation could occur in many sectors unless the United States can quickly make significant progress in balancing its exports. If such expectations are not met, the administration’s policy of increasing import tariffs could lose its effectiveness and undermine future tariff increases.
The United States must be cautious, as engaging in multilateral negotiations with multiple partners at once can be detrimental. From a project management perspective, this negotiating strategy may be suboptimal in terms of three key variables: time, cost, and quality—particularly time, which could be detrimental to the United States.
Although the United States is currently in a strong position as the leading consumer market while other countries face high inventories, these countries may respond by redirecting financial support to strengthen their domestic businesses. If such actions are taken simultaneously, the United States could enter a cycle of declining consumer behavior.
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