According to a high-ranking White House economic advisor, the administration has received trade negotiation proposals from over 15 nations following last week’s announcement of reciprocal tariffs, which were subsequently suspended by President Trump on Wednesday.
Speaking to the press at the White House, National Economic Council Director Kevin Hassett revealed that the U.S. Trade Representative’s office is currently evaluating numerous formal proposals from international trading partners. These offers are being assessed to determine their potential value before being presented to the president for consideration.
Hassett, in subsequent media appearances, indicated that several potential trade agreements were already in advanced stages of development. He also noted that the 90-day suspension of new tariffs announced by Trump was consistent with the administration’s intended strategy.
The president’s Wednesday announcement maintained the tariffs on China, which now faces a comprehensive 145 percent duty rate, while pausing implementation for other nations. A baseline 10 percent tariff remains in effect for all countries, as confirmed by White House officials. Hassett emphasized that any reduction below this baseline would require an exceptional agreement.
The timing of Trump’s decision appeared to be influenced by recent movements in the bond market. Hassett suggested that growing skepticism in the bond market may have prompted the president to act sooner rather than later. Trump himself acknowledged that market sentiment played a role in his decision, noting that investors were becoming increasingly anxious.
The announcement came during a period of unprecedented market volatility. Following the pause in tariff implementation, financial markets responded dramatically, with the Dow Jones Industrial Average surging 2,900 points. Similar gains were observed in both the Nasdaq and S&P 500, though all three major indexes experienced declines by Thursday morning.
In response to Trump’s decision, the European Union announced a corresponding 90-day suspension of its planned retaliatory measures. European Commission President Ursula von der Leyen stated that the EU would postpone implementing new tariffs on 20.9 billion euros ($23 billion) worth of U.S. imports, expressing a desire to pursue diplomatic solutions.
Prior to the pause, the new tariffs had briefly taken effect for many trading partners on Wednesday. The temporary suspension is designed to provide an opportunity for nations to engage in trade negotiations with the United States. During this period, discussions will focus on reaching agreements that satisfy the administration’s trade objectives while addressing concerns from international partners.
The White House indicates that any future trade deals will need to meet stringent criteria to warrant tariff reductions below the current baseline. This approach reflects the administration’s commitment to securing what it considers fair trade arrangements while maintaining pressure on trading partners through the baseline tariff structure.
The significant market response to these developments underscores the global economic implications of U.S. trade policy decisions. The administration’s willingness to pause tariff implementation while maintaining leverage through the baseline rate suggests a strategic approach to international trade negotiations, balancing diplomatic flexibility with economic pressure.