The United States Launches Tariff Talks with 18 Nations: Reciprocal Tariffs Will Be Imposed if No Deal is Made
The U.S. government is advancing tariff negotiations with 18 trade partners, using a new framework from the U.S. Trade Representative, focusing on tariffs, non-tariff barriers, and digital trade issues, with plans to finalize by July 8, 2025. If no agreement is reached, reciprocal tariffs will be imposed. Mexico, Canada, and China are excluded from this framework and will be addressed separately.
Key Updates
04/27 17:00
The United States Launches Tariff Talks with 18 Nations: Reciprocal Tariffs Will Be Imposed if No Deal is Made
The U.S. government is advancing tariff negotiations with 18 trade partners, using a new framework from the U.S. Trade Representative, focusing on tariffs, non-tariff barriers, and digital trade issues, with plans to finalize by July 8, 2025. If no agreement is reached, reciprocal tariffs will be imposed. Mexico, Canada, and China are excluded from this framework and will be addressed separately.
New Framework Template and Key Negotiation Points
According to reports from multiple media outlets citing informed sources, U.S. officials have developed a unified template to simplify the reciprocal tariff negotiations. This template outlines six core areas as a guiding framework for negotiations with various countries, including:
- Tariffs and Quotas: Tax rates and quota restrictions on imported goods.
- Non-Tariff Trade Barriers: Such as technical standards and inspection requirements that may impede U.S. goods from entering foreign markets.
- Digital Trade: Covers data flow, digital taxation, and e-commerce regulations.
- Rules of Origin: Standards defining the origin of products, impacting tariff applicability.
- Economic Security: Involves issues like supply chain resilience and protection of key industries.
- Other Business Issues: Includes investment regulations and intellectual property protection.
U.S. officials will propose specific requirements to each trade partner based on these categories. Informed sources indicate that the template content may still be adjusted based on new information as negotiations progress.
Negotiation Schedule and Procedural Arrangements
The U.S. plans to complete the first round of negotiations with 18 countries over three weeks, following a "six countries per week" rhythm within the next two months. A new cycle will then commence, continuing until the government-set deadline of July 8.
The preliminary schedule is as follows:
- Week 1: Negotiations with 6 countries
- Week 2: Negotiations with another group of 6 countries
- Week 3: Negotiations with the remaining 6 countries
- Cycle restarts until the deadline
If an agreement is not reached with a country by the deadline, that country will face reciprocal tariffs. President Trump reserves the right to extend the 90-day grace period, but it has not been announced whether this option will be exercised.
Excluded Countries and Special Treatment
Although the U.S. will negotiate with 18 major trade partners, not all important trading countries are included in the new template framework.
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Mexico and Canada: As the two largest U.S. trade partners, they are unlikely to participate in the new template negotiations due to the USMCA framework and the fact that the reciprocal tariff order does not apply to them.
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China: As the third-largest U.S. trade partner, China is expected to take a different negotiation path due to already being subjected to tariffs of at least 145%. President Trump stated that unless China shows "substantial action," the high tariffs on Chinese goods will not be unilaterally lifted.
The full list of 18 countries has not yet been released, but India is considered one of the fastest-progressing countries. During a recent visit to New Delhi by U.S. Vice President JD Vance, both sides reached a consensus on broad negotiation terms. In contrast, the EU has stated that the U.S. has not yet made specific negotiation requests, and there are still gaps in understanding.
Reciprocal Tariff Measures and Grace Period Arrangements
Under current policy, if a country fails to reach an agreement with the U.S. by July 8, it will automatically face reciprocal tariffs. These tariffs will be set based on the country's existing tariffs or trade barriers on U.S. goods, aiming to make trade conditions more equitable.
Currently, the U.S. has imposed a 10% base tariff on most countries globally and has announced plans to impose reciprocal tariffs ranging from 20% to 50% on countries that do not reach an agreement. Tariffs on China have already been increased to 245%.
The Trump administration announced a 90-day postponement of reciprocal tariffs in early April to allow for negotiations. If no agreement is reached by July 8 and Trump does not extend the grace period, the reciprocal tariffs will take effect officially.
