Fear of Sectoral Tariffs Proving Roadblock for Trump Trade Deals

Tariff negotiations with the Trump administration are running into roadblocks, as partners including Japan, India and the European Union balk at signing deals without knowing how badly they’ll be hit by separate levies on exports including chips, drugs and steel.

The US Commerce Department is set within weeks to announce the outcomes of its investigations into sectors deemed vital to national security, including semiconductors, pharmaceuticals and critical minerals. The probes are widely expected to result in levies applied under Section 232 of the Trade Expansion Act on a range of foreign-made products in those industries.

Problem is, governments seeking agreements ...