US President Donald Trump has suggested that new trade agreements could be finalized this week. However, he did not specify the countries involved.

Speaking aboard Air Force One on May 5, 2025, Trump responded, “It could very well be,” when asked about upcoming trade deals.

The president asserted his authority in negotiating these deals, saying, “At the end of this, I’ll set my own deals — because I set the deal, they don’t set the deal.”

He mentioned that negotiations are ongoing with several countries but did not provide additional details. Trump addressed trade tensions with China, noting that discussions are occurring between his aides and Chinese officials.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Presidential trade authority has evolved significantly, empowering unilateral action

Trump’s assertion that “I’ll set my own deals” reflects the culmination of decades of expanding presidential trade powers that began in the 1930s.

The Reciprocal Trade Agreements Act of 1934 marked a fundamental shift, giving presidents the authority to negotiate tariff reductions by up to 50% without congressional approval, moving away from congressionally-set fixed tariff rates 1.

This presidential authority expanded dramatically with the Trade Act of 1974, which elevated the Special Trade Representative to cabinet-level status and consolidated trade negotiation powers under the executive branch 2.

By 1979, the newly renamed Office of the United States Trade Representative (USTR) had centralized trade policy functions within the White House, creating the institutional framework that enables presidents to exert significant control over trade negotiations 3.

The historical progression explains why Trump can credibly threaten to “set a certain tariff number” within “the next two or three weeks” without mentioning congressional involvement. He is operating within an established system that concentrates trade authority in the executive branch.

2️⃣ Trade wars create measurable economic costs for both countries

While Trump discusses potential deals and tariff adjustments, economic data shows his trade policies have created significant costs for both American consumers and the Chinese economy.

The average US household faces an estimated US$831 annual cost increase from Chinese tariffs, including US$211 in direct tax burden and $620 in market inefficiencies from disrupted trade flows 4.

Federal Reserve analysis projects that US tariffs will reduce Chinese GDP by 0.25% to 0.39%, while comprehensive economic modeling shows U.S. tariffs and retaliatory measures combined could reduce U.S. GDP by 1.0% and eliminate approximately 671,000 American jobs 56.