Trump Administration Launches Global Trade Talks with 20 Economies to Shape Future U.S. Policy

The Trump administration, led by the U.S. Trade Representative, is negotiating trade agreements with about 20 global economies to create model deals for future U.S. trade policy. This initiative includes major partners like China, India, Japan, and smaller economies, aiming to reshape trade norms under Trump's 'reciprocal tariff' framework. The UK has signed a preliminary agreement, and talks with other countries are ongoing. The strategy marks a shift from multilateral to bilateral agreements, focusing on reducing trade imbalances and offering tariff exemptions in exchange for market access concessions.

A Strategic Shift in U.S. Trade Policy

In a marked departure from multilateral trade frameworks, the Trump administration is pursuing a series of bilateral and narrowly scoped agreements. According to officials familiar with the matter, the administration’s goal is to create a set of “template” deals that can be rapidly replicated with other countries. Commerce Secretary Howard Lutnick explained the rationale in an interview with Bloomberg Television: “We’re trying to show people a framework of how to do business so we can roll much more quickly.”

Treasury Secretary Scott Bessent confirmed that the U.S. is emphasizing talks with 18 to 20 countries, though the full list has not been publicly disclosed. The USTR has briefed lawmakers on the initiative, which is being positioned as a way to streamline future negotiations and reduce trade imbalances.

The First Deal: U.S.-UK Agreement

The United Kingdom became the first country to reach a preliminary trade agreement with the Trump administration. While modest in scope, the five-page document addresses tariff reductions, digital trade cooperation, and agricultural exports. It also reaffirms commitments under the Government Procurement Agreement and sets the stage for more comprehensive negotiations.

“This is just the beginning,” President Trump said during a press briefing. “We’re going to be having conferences, or, at some point, we won’t have conferences—we’ll just put out a statement that we signed this country, that country.”

The UK deal is being touted as a breakthrough and a potential model for other nations. White House economic adviser Kevin Hassett told CNBC that “about 24” countries are close to reaching similar agreements.

Key Economies on the Priority List

The list of countries involved in the early stages of negotiation includes a mix of major exporters and smaller economies. Among the larger economies are:

• China: Talks are scheduled to begin this weekend in Switzerland. Trump has floated reducing tariffs on Chinese goods from 145% to 80% as a gesture to de-escalate trade tensions.
• India: In advanced discussions with U.S. officials, India is seen as a key partner in the Indo-Pacific region.
• Japan and South Korea: Both are top sources of U.S. imports, though Commerce Secretary Lutnick cautioned that these would not be “fast deals.”
• Vietnam: Another major exporter to the U.S., Vietnam is part of the administration’s broader Asia strategy.

Other countries reportedly on the list include Taiwan, Switzerland, Israel, Australia, and Argentina. Smaller economies such as Mauritius, Lesotho, Madagascar, Fiji, and Ecuador are also involved, many of them seeking to avoid higher “reciprocal” tariffs.

Tariff Framework and Negotiation Strategy

The administration’s approach is rooted in President Trump’s April 2 announcement of a 10% universal tariff on all imports, with additional “reciprocal” duties targeted at countries with significant trade surpluses with the U.S. While some of these duties have been walked back—particularly those aimed at China—the 10% baseline remains in place.

The goal of the current negotiations is to offer countries a path to exemption or reduction from these tariffs in exchange for concessions on market access, digital trade, and regulatory alignment. Trump has emphasized that these deals will also include provisions to fast-track American goods through foreign customs processes, reducing red tape and boosting U.S. exports.

Talks with China: A High-Stakes Engagement

The upcoming talks with China are among the most closely watched. Scheduled to take place in Switzerland, the negotiations mark the first major engagement between the two countries since the imposition of steep tariffs that triggered a trade war. Trump has indicated a willingness to reduce tariffs significantly if a “fair deal” can be reached.

“I think we’re going to come back with a fair deal for both China and us,” Trump said, though he added that he wouldn’t be disappointed if no agreement was reached this weekend.

Smaller Economies Seek Relief

For smaller nations, the stakes are different. Countries like Liechtenstein, Fiji, and Lesotho are negotiating to avoid being swept up in the broader tariff regime. These talks are expected to result in simpler agreements that may not significantly impact U.S. trade volumes but could serve as useful diplomatic tools and templates for future deals.

According to Commerce Secretary Lutnick, these initial agreements are designed to be “simple” and “fast,” allowing the administration to demonstrate early wins and build momentum.

Broader Implications and Next Steps

While the administration has not released a full list of the 20 economies involved, sources indicate that exploratory talks are also underway with the European Union, Brazil, and the Philippines, though these are not officially part of the current priority slate.

The Trump administration’s strategy represents a significant shift from previous U.S. trade policy, which often relied on large, multilateral agreements. By contrast, the current approach emphasizes speed, bilateralism, and the use of model agreements to standardize future negotiations.

As President Trump put it, “After a number of these are done—nobody has enough people to do it—we’re just going to put out, ‘X country is going to pay this. And if they open up, they’re going to do this and that.’”

References

• Trump’s priority list for tariff talks homes in on around 20 economies like Vietnam, Japan: Sources
• Trump floats cutting China tariffs ahead of talks this weekend
• Trump’s Priority List for Tariff Talks Homes In on Around 20 Economies
• Trump tariffs live updates: Trump floats slashing China tariffs to 80% with 'many' deals 'in the hopper'
• U.S.-UK Trade Deal Illustrates Trump’s Shifting Trade Policy
• Taiwan likely to be among 20 countries on US tariff talks priority list | Taiwan News | May. 10, 2025 19:43