Trade Talks Heat Up: Bessent’s 90-Day Window Promises Winners and Losers

US Treasury Secretary Scott Bessent has set the stage for a flurry of global trade deals, signaling that several agreements could be announced within the next 90 days as the United States accelerates negotiations with key partners. Bessent’s remarks highlight rapid progress with India and other Asian nations, while suggesting the European Union remains a sticking point.

 

Key Highlights:

 

Countdown to New Deals: With a 90-day window before higher “reciprocal” tariffs snap back, Bessent says multiple trade agreements are moving quickly and expects several to be finalized soon. The US is focusing on 18 priority trading partners, with both regional and bilateral deals on the table.

 

India in the Fast Lane: Bessent identified India as likely to be among the first countries to sign a new trade pact, praising New Delhi’s cooperative approach and “fewer non-tariff barriers.” Talks with Japan and South Korea are also advancing, underscoring Asia’s central role in the US trade strategy.

 

EU Faces Negotiation Hurdles: Bessent was candid about slow progress with the European Union, citing internal divisions and a “collective action problem” that make a quick agreement unlikely. He noted most other countries are negotiating in good faith, but the EU’s complex coalition is proving challenging.

 

Tariff Threat Looms: If deals aren’t reached by the end of the 90-day period, the US will reimpose steep tariffs, some as high as 145%, reverting to levels set earlier in April. This ultimatum is driving urgency in ongoing talks.

 

Market Impact: The prospect of rapid trade deals and a temporary tariff pause has boosted market confidence, with recent announcements already spurring rallies in US equities.

 

With the clock ticking, the world is watching to see which countries will clinch deals and which will face renewed US tariffs.

 

Sources: Reuters, CNN, Times of India, The Edge Malaysia, Moneycontrol