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Trump administration prioritises trade talks with key Asian allies, leaving most nations in limbo

The Trump administration is prioritizing trade talks with a few strategic allies while leaving most countries confused and sidelined amid sweeping tariffs and unclear demands.

April 12, 2025 / 16:36 IST
US President Donald Trump

The Trump administration is moving ahead with a limited set of trade negotiations while leaving the majority of countries affected by sweeping US tariffs uncertain about what Washington wants, creating a global climate of confusion and frustration, Politico reported.

Despite imposing a flat 10% tariff on nearly all imports starting April 2 — and temporarily pausing the harshest penalties — Trump has only initiated serious negotiations with a select group of countries: Vietnam, India, South Korea, and Japan. According to multiple officials close to the White House, these talks are focused on nations with strategic value in countering China, leaving others sidelined and unsure of how to proceed.

Seventy nations left in limbo as US pursues selective talks

The administration has launched a fast-paced, high-stakes diplomatic push: more than 70 countries are scrambling to start talks with the US during a 90-day reprieve before Trump’s so-called “reciprocal tariffs” snap back into full effect. But many nations, including major US trading partners such as the EU, Canada, Mexico, and China — which collectively account for over $3.1 trillion in trade — have been met with silence.

Diplomats from multiple countries, including several in Asia, said they’ve received little to no communication from Washington. “We’ve been told literally nothing,” one Asian official said. “It’s reactive, with no clear direction.” Another said their embassy had taken to brokering its own backchannel contacts to initiate dialogue with US trade officials.

Strategic focus on China-adjacent nations

The administration’s early focus on countries like Vietnam and Cambodia reflects Trump’s effort to prevent illegal Chinese goods from entering the US through third-party nations. Still, the selective approach has created confusion among both allies and adversaries.

For example, despite Israeli Prime Minister Benjamin Netanyahu personally appealing to Trump to drop the tariffs, Israel’s decision to eliminate duties on US goods wasn’t enough to secure an early deal. The EU’s public offer to eliminate all tariffs on cars and industrial goods was also dismissed, sidelining one of America’s largest economic partners.

Mixed progress in negotiations with key partners

Some countries are reporting early breakthroughs. South Korea’s trade envoy, Cheong In-kyo, met with US Trade Representative Jamieson Greer and returned home with a framework for itemised negotiations on steel and auto exports. India remains in near-daily talks and is optimistic about closing gaps before tariffs return.

Vietnam has launched formal trade talks and emphasised the need for a long-term bilateral agreement. Japan is preparing for in-depth discussions with US officials about non-tariff barriers and currency policies — a far more complicated set of demands.

However, experts say US calls to remove non-tariff barriers, such as digital services taxes or value-added taxes, could effectively require countries to overhaul entire regulatory and tax

systems. Agricultural market access is another sticking point, with US officials targeting longstanding European and Australian restrictions.

“These are tough asks politically,” said William Reinsch, former US trade official. “It’s easy to attack: ‘The Americans want unsafe cars, dirtier air, sick chickens, and bad wine.’”

Smaller nations sidelined

Many developing countries say they lack the economic leverage or bandwidth to respond effectively. One African diplomat said their government was “laying low” due to the limited impact of the initial tariffs. A Latin American official said their country had made multiple requests to meet with senior Commerce and Treasury officials but received no reply. “We’re out from the worst of it,” the diplomat said, “but we’re still weighing what to do.”

Trump’s broader trade vision remains unclear

Uncertainty is mounting about whether the current chaos is a deliberate negotiation tactic or signals a fundamental shift in how the US engages with global trade. With Trump rejecting broad-based EU deals and demanding sweeping structural changes from individual countries, some fear the administration is abandoning multilateralism in favour of ad hoc bilateralism.

“Every country is banging on the White House’s door at once,” said one EU diplomat. “It’s a mess. And we don’t know if it’s a tactic or a paradigm shift.”

MC World Desk
first published: Apr 12, 2025 04:36 pm

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