Reports indicate that between 50 and nearly 70 countries have contacted the Trump administration to negotiate tariff relief. Treasury Secretary Scott Bessent noted that nations like Japan, Vietnam, Israel, and the European Union (EU) are among those seeking deals. President of EU Commission, Ursula von der Leyen, “we stand ready to negotiate with the United States. We have offered zero-for-zero tariffs on industrial goods”.
Market Rally
U.S. stocks rallied last night after recent losses, with the S&P 500 opening up 3.4%, led by tech and financials. The rebound follows signs of possible tariff negotiations, despite President Trump’s threats of steep new duties on Chinese imports and global goods starting April 9.
Trump’s Strategy
Trump has defended the tariffs as a necessary “medicine” to address trade deficits and boost U.S. manufacturing, rejecting calls for a pause while expressing openness to “fair deals” with countries willing to reduce their trade barriers. His administration, including Bessent and Commerce Secretary Howard Lutnick, insists the tariffs are a reset of global trade, not a short-term negotiation tactic. Trump has suggested some tariffs could be permanent while others might be negotiable.
Key Negotiations
Japan has emerged as a priority, with Prime Minister Shigeru Ishiba engaging Trump directly, prompting Bessent and U.S. Trade Representative Jamieson Greer to lead talks. Other nations, like Vietnam (offering zero tariffs) and Israel (with Prime Minister Benjamin Netanyahu meeting Trump), are also in active discussions. Meanwhile, China’s retaliatory 34% tariff on U.S. goods, effective April 10, 2025, and Trump’s threat of an additional 50% tariff signal an escalating US – China Trade war.
