Traders in Asia are preparing for increased volatility as the March 1 deadline for trade talks approaches. Effects of recent spikes Prices have plunged following recently implemented tariffs in April, which have set off recession fears and sent all assets prices tumbling. In response to the economic fallout, the Trump administration has issued a 90-day freeze on existing 10% baseline tariffs. This freeze is scheduled to end on Wednesday. This unfortunate turn of events has had to lead countries to plan their next steps in the continuing tariff battle.
If you’re wondering what comes next, starting Monday President Trump will begin sending letters negotiating tariffs to 12 to 15 countries. With only hours to go, countries are racing to secure the deals they want. They’re even furiously lobbying for leniency, given the huge changes coming down the pike. Meanwhile, countries from Thailand to Morocco are busy negotiating agreements with the U.S. In return, they’re providing greater access to American farm markets and more Boeing jets—now just for cutting that nasty 36% tariff.
In the course of these negotiations, the administration has been continuing with what they’ve called “boomerang diplomacy.” At the same time, they’re threatening to bring back the higher tariff levels imposed on April 2. This tactic can have a serious impact on countries that are about as far away from a deal as you can get. Just consider Cambodia, which now faces a crippling 49% tariff. In stark contrast, Vietnam has already signed a full-blown deal yet is still at the table negotiating to complete the pact’s terms.
Meanwhile, the U.S. seems poised to raise tariff levels too, though signals suggest a small increase accompanied by targeted extensions. As the July 9 deadline approaches, stakeholders in Washington are starting to get jittery. They have to choose between doubling down on their advocacy or retreating. Scott Bessent, a key figure in the negotiations, remarked, “We’re going to be very busy over the next 72 hours,” underscoring the urgency of the situation.
In this complex landscape, South Korea is attempting to negotiate extensions to protect its car exports from a potential tariff hike. Time is all that the nation can hope to purchase. It’s steering huge, sensitive debates that can only promise to ease or exacerbate economic friction.
The European Union, Japan, India, and South Korea are all currently in advanced negotiations on tariffs with the U.S. These new, duplicative discussions have made uncertain the timeline for reaching a resolution. According to Bessent, “If you want to speed things up, have at it. If you want to go back to the old rate, that’s your choice,” highlighting the precarious balance that countries must maintain as they weigh their options.
With the clock ticking, it is still unclear how many countries will be able to come to a final agreement by the July 9th date. Some of those still well short of a resolution will get a three-week stay while negotiations proceed around the clock.