On Tuesday local time, U.S. Treasury Secretary Scott Bessent candidly acknowledged in a media interview that it is "nearly impossible" to achieve the goal of reaching formal tariff agreements with major trade partners within the "90-day tariff suspension period" announced by the Trump administration. He pointed out that the U.S. is currently in urgent negotiations with 14 major countries with significant trade deficits. Although it's difficult to form a complete legal text within the stipulated time, they hope to reach clear substantive consensus.
"We are working on creating mechanisms for the 14 largest trade partners. Expecting to complete a full legal agreement within 90 days is unrealistic, but if these countries are willing to lower tariffs, reduce non-tariff barriers, stop currency manipulation, and cut subsidies to industry and labor, we can move forward together," Bessent stated.
Regarding U.S.-China trade relations, Bessent conveyed a relatively mild tone. He indicated that there is currently no expectation to impose high tariffs on China and expressed a willingness to reach a major trade agreement with Beijing involving "structural changes." He stressed that tariffs are not merely bluster but concern significant economic interests and should not be taken lightly.
Bessent also mentioned that President Trump previously announced a 90-day tariff exemption for certain countries, in exchange for these countries lowering reciprocal tariff levels to 10%. This temporary measure took effect immediately last Wednesday.
According to several informed sources, Bessent has identified the UK, Australia, South Korea, India, and Japan as primary targets for a new round of trade negotiations and is maintaining close contact with officials from these countries. As the chief trade adviser and negotiator for the Trump administration, Bessent has initiated discussions with multiple governments regarding the impact of tariffs above 10%.
On Wednesday, Japan’s Minister for Economic Revitalization, Akira Amari, will travel to Washington to hold preliminary talks with Bessent and U.S. Trade Representative Jamieson Greer. While there is generally low expectation for immediately reaching an agreement during this round of talks, it marks the restart of U.S.-Japan trade dialogue. Meanwhile, Japanese Prime Minister Shigeru Ishiba stated on Monday that Japan won't make concessions easily just to conclude negotiations quickly.
The White House is also actively evaluating agreement proposals from multiple countries. Kevin Hassett, Director of the National Economic Council, stated that over a dozen countries have submitted "very good, impressive" trade agreement proposals to the U.S., and Commerce Secretary Howard Lutnick and Trade Representative Greer are assessing whether they meet the standards. He also raised the strategy question, "Should we announce these agreements one by one, or release a batch all at once?" This is still under internal discussion.
From the current progress, although the U.S. has accelerated its pace, truly reaching agreements is still fraught with uncertainty. The bilateral negotiations and policy directions in the coming weeks will become a focal point for markets and external observers.
