#TariffPause The U.S. and other countries are racing against time to negotiate with the hope of reaching a trade agreement before the 90-day deadline for halting retaliatory tariffs.
Two weeks after President Donald Trump announced a temporary halt to plans to impose high retaliatory tariffs on countries and asserted that a series of trade agreements would be reached within 90 days, negotiations between the U.S. and countries are taking place with different nuances behind the scenes.
The U.S.-China "brain duel"
After mutual retaliatory measures, the U.S. currently imposes a 145% tariff on Chinese goods, while Beijing imposes a 125% tariff on U.S. goods.
In a sign of easing tensions, President Trump has recently repeatedly asserted that he believes the U.S. and China will reach an agreement. He also stated he would consider significantly reducing tariffs on Beijing.
According to informed sources, some U.S. officials acknowledge that high tariffs on China are unsustainable and they have outlined a strategy to reduce tariffs between the two countries.
U.S. Treasury Secretary Scott Bessent dismissed speculation that President Trump is considering unilaterally lowering tariffs imposed on Beijing before any negotiations with Chinese President Xi Jinping. He emphasized that any moves to reduce trade tensions would require participation from both sides.
"I think both sides believe that the current tariffs are unsustainable. This is equivalent to an embargo, and the cessation of trade between the two countries is not in anyone's interest," he said.
Nevertheless, China claims it will only negotiate on the basis of equality and mutual respect.
"If the U.S. really wants to resolve issues through dialogue and negotiation, they should stop threatening and coercing, and engage in dialogue with China on the basis of equality, respect, and mutual benefit. Talking about reaching an agreement with China while continuously applying maximum pressure on China is not the right way to deal with China and will not be effective," said Chinese Foreign Ministry spokesperson Guo Jiakun.
Beijing also denied that it is negotiating trade with Washington. "China and the U.S. have not conducted any consultations or negotiations related to tariffs, let alone reaching an agreement," Mr. Guo said.
However, a White House official stated that some low-level direct meetings, as well as a phone call between U.S. and Chinese officials, took place this week. President Trump also asserted that the U.S. and China are "actively" conducting trade negotiations.
Conflicting statements from the U.S. and China further highlight the unpredictability in the bilateral relationship of the two largest economies in the world.
The negotiation wheel with other countries
Mr. Trump's warning about tariffs has prompted many governments to urgently push for negotiations with the U.S. about eliminating tariffs and other trade barriers.
According to the White House, more than 100 countries have approached the administration to try to negotiate agreements during the 90-day pause.
White House Press Secretary Karoline Leavitt stated that the Trump administration has received 18 written proposals and the U.S. trade team "met with 34 countries just this week."
"There is a lot of progress happening. On behalf of American workers and the American people, we are moving quickly to ensure these agreements are implemented," Ms. Leavitt said.
When asked whether tariffs are really effective, she replied: "Be patient and you will see." However, negotiating multiple agreements at the same time poses significant challenges for Mr. Trump's administration.
According to some informed sources in the negotiations, another obstacle is that foreign governments say they do not know exactly what the Trump administration actually wants. With Mr. Trump's erratic demands, they are unsure whether his aides have enough authority to reach agreements with them.
Greta Peisch, a former trade official who is now a partner at the law firm Wiley Rein, said the tight timeline raises questions about whether any agreements reached in the coming months will be "experimental or more ambitious" rather than actual trade agreements. She also noted that economic benefits could be limited.
"When you look at some of these trade relationships, merely eliminating trade barriers may not lead to significant changes in trade flows in the near future," she analyzed.
Although the Trump administration states that some agreements could be finalized quickly, initial meetings suggest that negotiations may be more complicated, especially with major trading partners like Japan. The two countries have had trade disputes lasting decades over industries like steel and auto parts.
U.S. Treasury Secretary Bessent stated that negotiations with Japan will include many factors such as "tariffs, non-tariff trade barriers, currency manipulation, and government subsidies for labor and fixed capital investment," but will not include specific targets for the USD - yen exchange rate.
Some agreements are being discussed - for example, a project that Japan, South Korea, and Taiwan could invest in a liquefied natural gas export pipeline from Alaska - which could take at least 5 years to come to fruition.
"Tokyo wants to maintain the alliance and keep peace with Mr. Trump but will not sacrifice Japan's interests. The Japanese government is willing to increase investment in the U.S. and buy more of their goods but will not be pressured or forced into asymmetric agreements," said Daniel Russel, vice president of the Asia Society Policy Institute.
South Korean officials also seem willing to discuss trade imbalances, as well as purchasing more natural gas and investing in the U.S. shipbuilding industry.
U.S. Treasury Secretary Bessent expressed optimism about the prospects of reaching a new trade agreement between the U.S. and South Korea.
"We had a very successful bilateral meeting with South Korea today. Negotiations are progressing faster than I thought. We will discuss technical terms as early as next week," Mr. Bessent told reporters in the Oval Office.
However, it is unclear whether the South Korean government has the capacity to negotiate actively to reach an agreement, as its president has been impeached and elections will not take place until June 3.
In Europe, UK Treasury Secretary Rachel Reeves stated that the country has no plans to rush into signing a trade agreement with the U.S.
She emphasized that she wants to reduce trade barriers between the UK and other countries, but there are hard boundaries that the UK government will not cross, such as changing food safety or automotive standards.
With larger trading partners, such as the European Union, discussions seem more difficult. European officials have expressed frustration over the lack of clear goals from the Trump administration.
"We want more clarity on expectations," said Valdis Dombrovskis, the European Commissioner for Economy, at this week's Semafor global economic summit.
He noted that European officials had made "specific proposals," such as buying more liquefied natural gas and applying zero tariffs on industrial goods, but the U.S. needs to clarify more about what they want.
"We are trying to find solutions and ways to move forward. But we have also pointed out that in the absence of solutions, we are ready to protect our companies," he emphasized.
The EU has drawn up a list of U.S. products on which they may impose separate tariffs in retaliation and is working to diversify trade relationships.
European Commission President Ursula von der Leyen said she has had "countless negotiations with heads of state and government around the world wanting to cooperate with the EU on a new order," including Iceland, New Zealand, the United Arab Emirates, India, Mexico...