The move comes as Trump's 30-day tariff delay is set to end on July 8. This is a milestone after global stock, bond and currency markets reacted negatively to a series of tariff policies announced in April.
The draft letter from the US Trade Representative Office (USTR) reflects efforts to promote ongoing negotiations with multiple partners at the same time, as time becomes urgent.
Although US officials, including White House economic adviser Kevin Hassett, have repeatedly confirmed that some of the deals are about to be finalized, so far, only one document has been signed with a major partner, the UK, but it is still more khungled than a final agreement.
According to the document, the USTR recommends that countries that are actively negotiating submit the best proposals in some key areas: import taxes and quotas for US industrial and agricultural goods, plans to handle non-taxable barriers, commitments on digital trade and economic security, as well as specific bilateral provisions.
The US will assess the responses within a few days, and issue a "possible landing zone" that could include the countervailing tax rate.
It is unclear which countries will receive the letter, but it is sent to partners with active negotiations, including meetings and document exchanges - which may include the European Union (EU), Japan, Vietnam and India.
A USTR official confirmed that negotiations are ongoing with multiple key partners and said: Reviewing progress and assessing the next steps is necessary at this time.
While the Trump administration is stepping up negotiations, the legality of some key tax policies is being tested in court.
Last week, the US International Trade Court ruled that Trump had exceeded his authority to impose tariffs based on the International Emergency Economic Powers Act (IEEPA). The measures include the Liberation Day tax and a series of taxes imposed on goods from Canada, Mexico and China, citing the countries involvement in importing fentanyl to the US.
However, less than 24 hours later, an appellate court temporarily suspended the above judgment, allowing the taxes to continue to be valid while the lawsuit is still under review.
In the draft letter, the US administration warned partners not to expect the tariffs to be lifted if the court issues an unfavorable ruling.
Despite the ongoing litigation in court, the president still plans to continue this tariff program under other legal bases if necessary. Therefore, it is important that we continue to discuss these issues, the document stated.
