The initial trade discussions under the Trump administration feature a diverse array of significant exporters alongside smaller economies, as the White House aims to secure agreements that may act as templates for future negotiations. The team of US President Donald Trump has identified approximately 20 partners as the primary targets for initial negotiations, according to individuals familiar with the situation who requested to remain anonymous. The Office of the US Trade Representative has provided lawmakers with a briefing on the targets, according to sources.
The group comprises nations like Japan, South Korea, and Vietnam, which are among the leading sources of US imports, where Trump aims to reduce the trade deficit. It also includes relatively minor partners such as Fiji, Lesotho, and Mauritius, the people said. Treasury Secretary Scott Bessent has indicated that the US is prioritizing discussions with 18 countries, although the complete list has not been disclosed publicly. This encompasses China, which is set to initiate discussions this weekend. The framework is intended to create “templates” that facilitate the swift conclusion of additional agreements, as stated by US Commerce Secretary Howard Lutnick. “We’re trying to show people a framework of how to do business so we can roll much more quickly,” Lutnick told Bloomberg Television.
The target list is not exhaustive. Administration officials have engaged in discussions with various nations, including Brazil and the Philippines. Negotiators from the European Union and the United States are also engaged in ongoing discussions. The White House, US Commerce Department, and USTR remained silent on requests for comment. Although certain nations have expressed dissatisfaction regarding the lack of clarity in the US’s requests for tariff relief, initial discussions indicate that the US might focus on less prominent countries to establish a precedent for others.
During a recent meeting, US Trade Representative Jamieson Greer indicated that the EU ought to be aware of the objectives of Trump’s team, as noted by Republican Senator Markwayne Mullin of Oklahoma, particularly in light of nations such as Cambodia, Madagascar, and Vietnam presenting proposals to meet the administration’s requirements. Republicans conveyed a strong desire to finalize agreements. Senator Kevin Cramer of North Dakota indicated that certain members advised Greer against delaying announcements until July, coinciding with the expiration of the 90-day pause on Trump’s April 2 higher tariffs for those who have not finalized a deal. “It sounds like there’s a lot happening and we’re going to be hearing about it soon,” he remarked. “Individuals exhibit a significant level of anxiety.”
The list also encompasses the United Kingdom, with which Trump unveiled a deal outline on Thursday that was modest in scope. India, currently engaged in advanced discussions with Trump officials, is also listed alongside South Korea and Japan. Lutnick cautioned that the latter two are “not going to be fast deals.” The administration is reportedly placing a high priority on negotiations with Australia, Argentina, Cambodia, Ecuador, Indonesia, Israel, Madagascar, Malaysia, Switzerland, and Taiwan, according to sources.
The economic scale of the countries exhibits significant variation. For instance, the United States imports more from Japan in a single day on average than it does from Lesotho throughout an entire year. Nevertheless, the involvement of smaller nations indicates that the White House is aiming to swiftly establish less complex agreements, even if the specific deals will have minimal impact on US commerce. Adjacent nations might, consequently, leverage those agreements.
According to one person familiar with discussions, other smaller countries, including Liechtenstein, are engaged in negotiations to prevent the imposition of a higher “reciprocal” tariff. Kevin Hassett, a leading economic adviser to Trump, informed CNBC on Friday that “about 24” countries are nearing an agreement similar to that of the UK. Bessent and Greer are set to initiate discussions with Chinese officials this weekend; on Friday, Trump proposed reducing his China tariff from 145 percent to 80 percent. USTR officials informed lawmakers that although negotiations with Beijing are significant, they are being regarded on a separate trajectory from the others, according to one individual familiar with the discussions.
Some countries have positioned themselves as willing partners. Switzerland has indicated that it is among 15 nations that will receive “somewhat preferential treatment” and may experience an extension of Trump’s tariff freeze beyond the July deadline, if deemed necessary. Argentina’s government, under the leadership of Trump ally Javier Milei, has engaged in a series of trade discussions with senior Trump officials. Bessent has stated that Argentina will be “toward the front of the line.”
Greer has identified Southeast Asia as a focal point. “That’s where we have some of our largest trade deficits,” he told CNBC this week. “We’re having productive discussions with Vietnam and others, and they comprehend the issues we aim to address.” Negotiations are set to take place next week with Cambodia, as reported by local media, while Malaysia initiated discussions last month. Officials from the United States have engaged in discussions with their counterparts in Indonesia as well as with representatives from Taiwan.
Lutnick cautioned on Thursday that the situation regarding an India deal is still complex; the declaration of a UK trade agreement was accompanied by numerous caveats, and essential details are yet to be finalized. “It just takes time, and it just takes work — so give us a chance, don’t be pushing and rushing,” Lutnick told Bloomberg Television. The destinies of other nations remain less clear. Australia, similar to the UK, experiences a trade deficit in goods with the US – positioning it as a strong contender for a framework deal. However, Trump and senior officials consistently suggested that his 10-percent baseline tariff serves as a minimum, a stance further supported by the agreement with the UK. Any agreement may depend instead on exemptions from other obligations, such as the 25-percent US tariffs on metals, or a potential 100-percent fee on foreign films that threatens to stifle Australia’s emerging film sector.
It remains uncertain what certain smaller economies might provide the United States in return for enhanced preferential treatment. For instance, Lesotho, an African mountain kingdom with a population smaller than that of Chicago, experiences a significant trade deficit with the US due to its exports of diamonds and apparel. Lesotho stands as one of the globe’s most impoverished countries and confronts a 50-percent reciprocal tariff should an agreement not be achieved. The agency has recently awarded a 10-year licence to Elon Musk’s Starlink, a company backed by billionaire Trump, and has committed to identifying methods to eliminate additional barriers to US investment.