U.S. President Donald Trump has underestimated the complexity of the interdependent world in his trade negotiations, and efforts should be made to restore the full function of the World Trade Organization (WTO), said Liu Baocheng, dean of the Center for International Business Ethics at the University of International Business and Economics in Beijing, on Sunday.
Trump famously said he was chasing 90 trade deals in 90 days. But with one month left, he has only closed one.
The U.S. administration had already pressed its trading partners, via letters, to submit their best offers.
"Trump, on one hand, he underestimated the complexity and the intricacy of the interdependent world where we live in the 21st century; and on the other, he also overestimated his own personal charisma and the U.S. power in the negotiation," Liu said in an interview with the China Global Television Network (CGTN).
"He is trying to have a sweeping tariff and spook the whole world so that everyone will come to his terms. But he forgot that this is really a repeated game. It's not really a prisoner 'dilemma where he can really strike a deal and walk away," the expert said.
The 90-day negotiation window from April 9 to July 8 was established after market volatility forced the White House to pause its 'Liberation Day' tariffs, which had been imposed on April 2.
As the world's largest multilateral trade platform, the World Trade Organization must undergo reform to better reflect the interests of developing nations and ensure fair trade for all countries, Liu said.
"WTO needs to reform to be more inclusive, taking into consideration many of those voices from the Global South, where they really want fair and equitable trade, while the reality of the different stages of economic development needs to be taken into full consideration, instead of simply the most-favored-nation treatment," he said.
"And much of the preferred system of the tariff to those in the underdeveloped world needs to be maintained, in order to really make the world walk in a synchronized and coordinated pace," said Liu.
Trump underestimates complexity of interdependent world in trade negotiations: expert
