Pressure to Seal Trump Trade Deals Ramps Up With Two Weeks to Go

Container ships at Felixstowe port, UK. Photographer: Chris Ratcliffe/Bloomberg Photo by Chris Ratcliffe /Bloomberg

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(Bloomberg) — Two weeks from President Donald Trump’s self-imposed deadline to reach deals with the US’s major trading partners, some of the most-watched talks aimed at clinching agreements to avoid higher tariffs are struggling to get over the finish line.

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There’s a lot at stake: As of July 9, exporting nations without a bilateral accord in place will face Trump’s so-called “Liberation Day” tariffs that are much higher than the current baseline 10% level applied to most countries.

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Only the UK has secured something on paper, though that pact kept the 10% so-called reciprocal rate in place and left unresolved one of Britain’s pain points — 25% steel duties. On a separate track is China, which has a fragile truce with the US that extends into mid-August to give time for negotiations to play out.

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QuickTake: A Guide to Trade Talks, Trump-Style

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Countries engaged in what Washington views as productive discussions may get their deadline extended. Court challenges to Trump’s legal authority for tariffs have provided an added element of uncertainty for companies that have spent the past 10 weeks either front-loading orders or hoping his threats of higher import taxes are just a negotiating tactic.

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Here’s a rundown of where various talks stand:

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European Union

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The best-case scenario remains an EU-US agreement on principles that would allow the negotiations to continue beyond the early July deadline, Bloomberg has reported. Trump complained last week about the EU talks, threatening to give up and impose unilateral tariffs. The EU, which has been seeking a mutually beneficial deal, will assess any end-result and at that stage decide what level of asymmetry — if any — it’s willing to accept or whether it will push ahead with countermeasures to correct any imbalances.

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India

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Trade officials from India and the US are still keen to clinch an interim deal before the deadline, but the two sides appear to be digging in their heels on some key issues, particularly on agricultural goods. The US is seeking access to India’s markets for its genetically modified crops, a request India has denied, while New Delhi wants an exemption to the reciprocal tariffs as well as sectoral duties. Indian Prime Minister Narendra Modi missed an opportunity to advance the trade deal with Trump when the US leader left the Group of Seven meeting in Canada earlier than planned last week.

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Vietnam

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Communist Party chief To Lam is set to lead a delegation of officials and business executives to the US, aiming to meet with Trump and clinch additional deals with US firms to help finalize an agreement. The nation has offered to boost purchases of American products from Boeing airplanes to agricultural goods to get a deal. Negotiators are close to a framework agreement under which Vietnam is pushing for tariffs in the range of 20% to 25%, Bloomberg News previously reported.