U.S. Treasury Secretary Scott Bessent Leads Tariff Talks with 17 Nations to Tackle Record $140.5 Billion Trade Deficit

U.S. Treasury Secretary Scott Bessent is negotiating trade agreements with 17 key U.S. partners, excluding China, to address a record $140.5 billion trade deficit in March 2025. The deficit was driven by increased imports before new tariffs. Talks aim to reduce tariff and non-tariff barriers, with potential deals expected soon. China, facing a 145% U.S. tariff, has not entered talks, demanding tariff removal first. The U.S. seeks to finalize most agreements by year-end, with some announcements possible this week.

Trade Talks Intensify as Deficit Hits Historic High

The U.S. trade deficit in goods and services soared to an all-time monthly high of $140.5 billion in March, according to data released by the U.S. Census Bureau and the Bureau of Economic Analysis. Imports rose 4.4% to $419.0 billion, while exports edged up just 0.2% to $278.5 billion. The widening gap reflects a 14% increase from February’s revised deficit of $123.2 billion.

The March figures preceded the implementation of sweeping tariff measures announced by the Trump administration in early April. These included a 145% tariff on Chinese imports and a temporary 10% baseline tariff on goods from most other countries, with a 90-day window for negotiations.

Bessent: 17 Nations in Talks, China Not Among Them

Speaking before the House Appropriations Committee on May 6, Secretary Bessent confirmed that the U.S. is currently engaged in tariff negotiations with 17 of its 18 major trading partners. China, the second-largest economy in the world and a central figure in past trade disputes, has not yet entered formal talks with Washington.

“China, we have not engaged in negotiations with as of yet,” Bessent told lawmakers. “They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They're unsustainable for them.”

Bessent emphasized that the administration is focused on securing reductions in both tariff and non-tariff barriers, including regulatory standards, currency practices, and customs procedures. He noted that many countries have submitted “very good offers” and that the U.S. could announce agreements with some of its largest partners “as early as this week.”

Participating Countries and Scope of Negotiations

While the Treasury Department has not released a full list of the 17 countries involved, trade data and administration statements suggest that the group includes major U.S. partners such as Canada, Mexico, Japan, the United Kingdom, Germany, France, India, South Korea, and the European Union bloc.

Japan, for instance, is reportedly aiming to finalize a deal with the U.S. by June, though American negotiators have resisted lowering tariffs on key Japanese exports like automobiles, steel, and aluminum. India has agreed to the terms of trade talks, according to Vice President JD Vance, while the European Union is preparing contingency tariffs on $113 billion worth of U.S. goods should negotiations fail.

The administration has given countries a three-month window—until July—to make concessions or face new tariffs ranging from 10% to over 50%. These talks are part of a broader strategy to compel foreign governments to reduce trade barriers and open their markets to American goods and services.

Strategic Goals: Tariff Reductions and Market Access

The Trump administration’s trade policy is centered on three pillars: trade renegotiation, tax reform, and deregulation. Bessent reiterated that the goal of the current negotiations is to secure reciprocal tariff reductions and eliminate non-tariff barriers that disadvantage U.S. exporters.

“We are the deficit country,” Bessent said. “They have come to us with very good offers. I’d be surprised if we don’t have more than 80% or 90% of those wrapped up by the end of the year.”

The administration is also seeking to address issues such as currency manipulation and discriminatory product standards. Countries that fail to meet U.S. demands may face higher tariffs once the 90-day negotiation period expires.

China Remains on the Sidelines

Despite being the largest contributor to the U.S. trade deficit, China has not yet entered formal negotiations. The U.S. imposed a 145% tariff on Chinese goods in April, prompting Beijing to retaliate with a 125% tariff on American imports. Bessent has warned that the tariffs could cost China up to 10 million jobs, stating that the economic pressure is on Beijing to initiate talks.

Chinese officials have acknowledged U.S. interest in negotiations but insist that Washington must first remove its tariffs. “If the United States wants to talk, it should show its sincerity and be prepared to correct its wrong practices and cancel the unilateral tariffs,” China’s Ministry of Commerce said in a recent statement.

President Trump has expressed willingness to ease tariffs on Chinese goods but has made clear that he will not be the first to compromise. “They want to meet, and they’re doing no business right now,” Trump said. “By not trading, we’re losing nothing. So we’re saving $1 trillion.”

Timeline and Outlook

Bessent has indicated that the administration expects to finalize the majority of trade agreements by the end of 2025. However, he also suggested that several deals could be announced imminently, depending on the progress of ongoing discussions.

The administration’s approach has drawn a mix of responses from trading partners. While some have welcomed the opportunity to renegotiate terms, others have expressed concern over the short timeline and the ambiguity of U.S. demands.

Nonetheless, Bessent remains optimistic. “Perhaps as early as this week we will be announcing trade deals with some of our largest trading partners,” he said. “They have come to us with very good offers.”

References

• US has yet to launch trade negotiations with China, Treasury secretary says
• US Treasury Sec. Bessent: Negotiating with 17 trading partners, have not engaged with China yet
• Bessent says US could announce trade deals with some countries this week
• Trump tariffs live updates: Trump meets with Canada's Carney, hints at coming pharma tariffs
• U.S. International Trade in Goods and Services, March 2025 | U.S. Bureau of Economic Analysis (BEA)
• 米財務長官 関税めぐる各国交渉 早ければ今週中にも合意の認識 | NHK
• Donald Trump tariffs news live updates: Trump says China 'suffering greatly' from tariffs - The Times of India