U.S. Tariff Pause Expiring With Few Trade Deals Secured

U.S. President Donald Trump’s 90-day tariff pause is set to expire next week, and his administration has yet to secure many significant trade deals. The only trade agreement announced so far is with the UK, which is scheduled to take effect on July 9, when the U.S.’s so-called reciprocal tariffs are set to resume.

Trump has indicated that he is not interested in extending the deadline to allow for more negotiation time and will soon be sending letters announcing tariff rates to various countries. Administration officials, however, have expressed optimism that more deals could be announced in the coming days. U.S. Commerce Secretary Howard Lutnick suggested last week that there were 10 deals ready to go, although he did not specify which countries were involved. Kevin Hassett, director of the National Economic Council, also mentioned that trading deals may be announced after the July 4 holiday.

On April 2, Trump imposed steep tariffs on the rest of the world, but paused them a week later to allow time for negotiations. U.S. trading partners have been in intense negotiations for the past three months to reduce these tariffs, but so far, have little to show for their efforts. The administration has agreed to a trade deal with the UK and a “trade agreement” with China, which merely brings tariffs back down to their “Liberation Day” levels.

With just a week remaining until tariffs return, here’s an overview of the current status of trade negotiations between Washington and Asian governments.

Talks between the U.S. and Japan have encountered a significant obstacle due to Trump’s imposition of a 25% tariff on cars. Japan’s automotive industry is the fourth-largest globally, contributing nearly 3% of the country’s GDP and employing one in eight people. The U.S. is Japan’s largest car export market, purchasing a third of its total production. Japan’s chief negotiator, Ryosei Akazawa, has stated that auto tariffs are “not something we can accept,” and with no resolution on auto tariffs, negotiations “remained in a fog.” Japan also faces a 24% tariff on all its exports, as well as a 50% tax on steel and aluminum. Trump has expressed frustration with Japan’s long-standing trade surplus with the U.S., suggesting that Japan buy more U.S. oil to close the deficit gap.

South Korea is hoping to be exempt from all U.S. tariffs, including the 25% reciprocal tariff on its exports, as well as the 25% tariffs on cars and the 50% tariff on steel and aluminum. Korea’s lead trade negotiator, Yeo Han-Koo, met with U.S. officials to start negotiations. All parties affirmed their commitment to reaching a deal soon, and a new Free Trade Agreement (FTA) between South Korea and the U.S. may be in the works. Trade is the first major challenge faced by newly elected South Korea president, Lee Jae-myung, who took office earlier this month after a snap election. In his inaugural address, Lee called “rising protectionism” a “threat to our very survival.” Korean negotiators do not appear optimistic that they will meet the July 9 deadline, with a senior Korean official stating that Seoul will try to seek an extension.

Both the U.S. and India had initially expressed optimism about reaching a trade deal, with India being one of the first countries to begin negotiations with the U.S. in April. However, no agreement has been announced yet. India currently faces a 26% “reciprocal” tariff on its exports to the U.S. Indian officials are reportedly hesitant to lower their own tariffs on agricultural products, which would allow U.S. products into the market. Agriculture is India’s largest employment sector, with almost half of the population working in farming. India also hopes to benefit from supply chains moving out of China, with companies like Apple and Foxconn investing in Indian factories. However, Trump has criticized Apple’s attempts to make iPhones in India, demanding instead that smartphones be made in the U.S. Trump has said he remains optimistic that a deal is coming, suggesting that the U.S. will soon be “able to go in and compete” in India.

Southeast Asian countries received some of the steepest tariffs on April 2, with some reaching as high as 49%. Several countries in the region rely on U.S. exports for growth, leading to a rush by leaders to offer concessions and promise to increase their own imports of U.S. goods to secure a deal with Washington. Vietnam’s Prime Minister Pham Minh Chinh expressed confidence that a “positive” trade deal could be made with the U.S. before the deadline. Indonesia and Malaysia, which face 32% and 24% tariff rates respectively, have also expressed optimism that they can conclude negotiations before the tariff pause expires next week. Thailand, however, is less certain about the status of its trade negotiations, with Thailand’s finance minister, Pichai Chunhavajira, arriving in the U.S. to begin talks in person and stating that negotiations may be extended past July 9.