US allies line up for trade deals during the 90-day tariff pause
The U.S. is now locked in rapid-fire negotiations with nations across the globe in a race to lock down bilateral trade deals during a 90-day pause on President Donald Trump's tariff plan.
After an aggressive and complex tariff strategy sent markets reeling, Trump announced he would put the plan on a three-month pause — all nations would face a 10% tariff except China, which would face 145%. The pause was intended to allow negotiations on trade to play out.
"Had a very productive call with the President of Mexico yesterday. Likewise, I met with the highest level Japanese Trade Representatives. It was a very productive meeting. Every Nation, including China, wants to meet! Today, Italy!" Trump wrote Thursday on Truth Social.
Some 75 countries have now reached out wanting to negotiate with the White House on trade deals, and 15 countries are in active negotiations, according to trade advisor Kevin Hassett.
Here's a roundup of some of the top-priority nations for deals:
Tokyo’s Economic Revitalization Minister Ryōsei Akazawa was in Washington, D.C., on Wednesday to negotiate on trade with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer — and even scored a meeting with Trump.
"A Great Honor to have just met with the Japanese Delegation on Trade. Big Progress!" Trump said on social media after the meeting.
But the Japanese delegation left Washington without a deal in hand, though the two sides agreed talks would continue.
Japanese Prime Minister Shigeru Ishiba has said he does not plan to offer "big concessions for the sake of wrapping up negotiations quickly."
He previously said Japan would offer a package that could include trade agreements on U.S. liquefied natural gas, cars, agriculture and defense in a deal aimed at the U.S. lifting tariffs entirely.
A Japan deal will be difficult, but will set the tone for other nations' trade deals, according to China expert Gordon Chang.
"Japan has a lot of non-tariff barriers," Chang said. "And that's really going to be the issue of disagreement between the United States and a lot of countries, but how we settle Japan, I think, will be the template for other countries."
Japan, he said, "tends to slow walk" trade through rules and regulations. Japanese regulators have kept American rice, for example, out of their markets to protect Japanese farmers.
"Look at Japan, tariffing rice 700%," White House press secretary Karoline Leavitt said. "Trump believes in reciprocity."
Vice President JD Vance said Tuesday he believes there’s a "good chance" the U.S. and the U.K. can work out a "great" trade deal.
"We’re certainly working very hard with Keir Starmer’s government," Vance said in an interview with UnHerd. "The president really loves the United Kingdom. He loved the queen. He admires and loves the king. It is a very important relationship."
Vance said of Trump: "He’s a businessman and has a number of important business relationships in [Britain]. But I think it’s much deeper than that. There’s a real cultural affinity. And, of course, fundamentally, America is an Anglo country."
The U.K. wants to negotiate an economic agreement with the U.S. to reduce not only the 10% across-the-board tariffs but also the 25% levies on metals and cars.
The U.K. announced it would suspend tariffs on 89 U.S. goods over the weekend, imports ranging from items like pasta, fruit juices, electric car batteries and spices to plastics and gardening supplies over the next two years.
South Korea and the U.S. are allied by a mutual defense treaty, so a trade deal would be a natural priority. The U.S. has several military bases there, and one of its prized THAAD missile defense systems.
Trump revealed that a trade deal was on the horizon after speaking to the acting president.
"We have the confines and probability of a great DEAL for both countries," he wrote on Truth Social after a phone call with acting President Han Duck-soo.
"We talked about their tremendous and unsustainable Surplus, Tariffs, Shipbuilding, large scale purchase of U.S. LNG, their joint venture in an Alaska Pipeline, and payment for the big time Military Protection we provide to South Korea," he said in the post. "They began these Military payments during my first term, Billions of Dollars, but Sleepy Joe Biden, for reasons unknown, terminated the deal. That was a shocker to all!"
Australia is reportedly another top 5 target for a trade deal. Unlike Vietnam, Australia turned down an offer from China last week to "join hands" in fighting U.S. tariffs.
"We’re not about to make common cause with China," Australian Deputy Prime Minister Richard Marles told Sky News on Wednesday. "We are not going to be holding hands with China in respect of any contest that is going on in the world."
While Australian Prime Minister Anthony Albanese said earlier this month that the 10% tariffs the U.S. was imposing were "not the act of a friend," he made clear Australia would not retaliate.
TRUMP'S TARIFF GAMBLE PUT TO THE TEST AS CHINA CHOKES OFF CRITICAL MINERAL SUPPLIES
But Australia is facing an election on May 3, complicating trade negotiations for the current government.
Trump expressed displeasure about a visit Chinese President Xi Jinping paid to Vietnam this week, potentially complicating talks on a trade deal.
"I don't blame China; I don't blame Vietnam," Trump said. "That's a lovely meeting. Meeting like trying to figure out, 'How do we screw the United States of America?’"
But Vietnam and China have had troubled relations for years.
Chinese manufacturers have increasingly relocated to Vietnam in recent years as a way to avoid trade friction between Washington and Beijing.
China-based manufacturers have also sought to evade tariffs by declaring their goods "Made in Vietnam" even when they've never touched Vietnamese soil. "Trade documentation has been falsified to make it look like it was made in that Southeast Asian nation when goods were actually made in China itself," said Chang.
India and the U.S. agreed in February to work on the first phase of a trade deal, with a goal of reaching bilateral trade worth $500 billion by 2030.
Trade secretary Sunil Barthwal said Tuesday India would pursue "trade liberalization," which could mean cutting tariffs and export controls.
India has a trade deficit of $45.6 billion with the U.S.
But India also has non-tariff trade barriers to contend with. "These are various regulations and standards and practices that make it difficult to sell in that country — sometimes requirements that you partner with a local Indian firm, and so you know, historically, the U.S. has had quite a bit of issues and concern with India," said Jonathan Doh, professor of international business at Villanova University.
CLICK HERE TO GET FOX BUSINESS ON THE GO
U.S. goods imported into India are currently subject to tariffs of between 5% and 30%, and India is now open to reducing tariffs on over half of U.S. goods, Reuters reported.
India Prime Minister Narendra Modi was one of Trump’s first visitors when he returned to the White House and the pair have a good relationship, but still Trump has called India a "tariff abuser."