• Treasury Secretary Scott Bessent reveals 18 trading partners have presented favorable proposals, with deals potentially closing this week.
  • China remains sidelined in current negotiations, though Bessent hints at possible progress 'in the coming weeks.'
  • Corporate America feels tariff pinch as Ford reports $2.5B loss and Mattel withdraws guidance.

Trade Winds Shift

U.S. Treasury Secretary Scott Bessent struck an optimistic tone at the Milken Institute Global Conference, disclosing that 17 of 18 key trading partners have submitted "very good trade proposals"—with China notably absent from the current round. The administration aims to finalize several agreements as early as this week, according to people briefed on the talks.

"We're seeing real momentum," Bessent told attendees in Malibu, framing the negotiations as part of President Trump's three-pronged economic strategy combining trade restructuring, tax cuts, and deregulation. Market watchers noted the remarks came as the administration seeks to reduce the federal deficit by 1% annually while targeting 3% GDP growth by mid-2026.

Corporate Fallout

The trade maneuvering arrives as major firms grapple with tariff impacts. Ford Motor Co. cited "tariff uncertainty" in its $2.5 billion quarterly loss, while Mattel confirmed price hikes on U.S. products to offset import costs. Neither company would comment on whether Bessent's timeline might alleviate pressure, though a Mattel insider said any tariff reductions "would materially improve margins."

China Question

While describing other partners as forthcoming, Bessent acknowledged China has "only offered what they've stated publicly"—a reference to stalled negotiations. Administration officials separately confirmed Beijing hasn't improved its position since last month's diplomatic meetings. Still, the Treasury Secretary suggested breakthrough potential "in the coming weeks," particularly if China addresses what the U.S. views as currency manipulation and unfair subsidies.

As negotiations enter a critical phase, analysts warn the administration faces mounting pressure to deliver results before midterm elections. "The clock is ticking," said one D.C.-based strategist, "but these proposals suggest real movement."