U.S. pushes countries for best offers as tariff deadline looms

Japan Times

2 days ago

The administration of U.S. President Donald Trump wants countries to provide their best offer on trade negotiations by Wednesday as officials seek to accelerate talks with multiple partners ahead of a self-imposed deadline in just five weeks, according to a draft letter to negotiating partners.
The draft, from the office of the United States Trade Representative (USTR), provides a window into how Trump plans to bring to a close unwieldy negotiations with dozens of countries that kicked off on April 9 when he paused his "Liberation Day" tariffs for 90 days until July 8 after stock, bond and currency markets revolted over the sweeping nature of the levies.
The document suggests an urgency within the administration to complete deals against its own tight deadline. While officials such as White House economic adviser Kevin Hassett have repeatedly promised that several agreements were nearing completion, so far only one agreement has been reached with a major U.S. trading partner: Britain. Even that limited pact was more akin to a framework for ongoing talks than a final deal.
According to the draft document, the U.S. is asking countries to list their best proposals in a number of key areas, including tariff and quota offers for the purchase of U.S. industrial and agricultural products and plans to remedy any nontariff barriers.
Other requested items include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter.
The U.S. will evaluate the responses within days and offer "a possible landing zone" that could include a reciprocal tariff rate, according to the letter.
It was unclear to which specific countries the letter would be sent, but it was directed at those where negotiations were active and included meetings and exchanges of documents. Active negotiations have been underway with the European Union, Japan, Vietnam and India, among others.
A USTR official said trade negotiations were ongoing. "Productive negotiations with many key trading partners continue at a rapid pace. It is in all parties' interest to take stock of progress and assess any next steps.'
Trump's ambitious — and often frenetic — tariff policy represents a major part of his "America First" economic agenda as he seeks to reshape U.S. trade relationships, reduce trade deficits and protect American industries. Republican lawmakers are also banking on tariffs to add to federal revenue and offset the cost of the tax cut legislation now working its way through Congress.
The twists and turns in Trump's tariff policies have taken investors on a rollercoaster ride. In May, U.S. stocks held their biggest rally of any month since November 2023, but that was after global indexes had cratered under the barrage of Trump's tariff announcements through February, March and early April. Stocks were little changed on Monday afternoon after Trump announced a surprise doubling of tariffs on steel and aluminum imports on Friday at an event in Pittsburgh.
Meanwhile, the legality of the approach used for imposing the most sweeping of his tariffs has been cast into doubt.
Last Wednesday, the Court of International Trade ruled that Trump had overstepped his authority with tariffs devised under the International Emergency Economic Powers Act (IEEPA), including the Liberation Day levies and earlier ones imposed on goods from Canada, Mexico and China related to Trump's accusations that the three countries have facilitated the flow of fentanyl into the U.S.
Less than 24 hours later, an appeals court temporarily paused that decision. The tariffs at the center of the legal dispute are expected to remain in effect for now while the case plays out.
The draft letter to trading partners warns them not to believe the tariffs will be sidelined if the court rules against Trump's use of the IEEPA.
"I should also note that regardless of ongoing litigation concerning the President's reciprocal tariff action in U.S. courts, the President intends to continue this tariff program pursuant to other robust legal authorities if necessary, so it is important that we continue our discussions on these matters," the draft says.