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First "90 days" trade deals announced
14 May 2025
While far from the pace needed to achieve ‘90 deals in 90 days’, the Trump administration announced its first two major trade deals since the pause in the “Liberation Day” tariffs — first with the United Kingdom and then with China. The UK deal addressed tariffs and non-tariff barriers like increasing agricultural market access. The deal with China saw each country reduce their tariffs by 115%, landing on a 10% tariff on US goods entering China and a 30% tariff on Chinese goods entering the United States.
Shortly before signing the executive order to codify the rollback of tariffs on China (for now), President Trump signed an executive order focused on bringing the cost of pharmaceuticals down. This order is directed at pharmaceutical companies, but the Trump administration expects them to negotiate with countries who subsidise pharmaceutical costs to share more of the R&D cost burden. This occurs as dozens of countries are trying to negotiate trade deals with the United States, and the Trump administration has flagged that they will tackle pharmaceutical subsidies in these discussions. With Australia in particular, its Pharmaceutical Benefits Scheme has been a sore point in economic ties with the United States for multiple bipartisan administrations.
These activities occurred as President Trump set off on his first major overseas trip of his second administration. He is travelling to the Middle East and White House officials have said they expect to land potentially more than US$1 trillion in deals while they visit Saudi Arabia, Qatar and the United Arab Emirates. In Saudi Arabia, the president has already signed a deal for a US$142 billion arms package, which the White House says is "the largest defense cooperation agreement" the United States has ever made.
Trump is simultaneously urging Congressional Republicans to “unify” to pass “THE ONE, BIG, BEAUTIFUL [tax] BILL” and flagged that he expects major progress while he’s overseas and to resolve any outstanding issues upon his return. Even though the first 100 days are finished, the administration’s pace and the rate of change has not eased up.
Mari Koeck
Director, Engagement and Impact
Lead image: US President Donald Trump and Saudi Crown Prince Mohammed bin Salman attend a bilateral meeting at the Saudi Royal Court on 13 May 2025 in Saudi Arabia. Trump has begun a multi-nation tour of the Gulf region focused on expanding economic ties and reinforcing security cooperation with key US allies. (Photo by Win McNamee for Getty Images)
"We want to see, for the good of both China and the U.S., an opening up of China to American business."
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2025 Economic Security Tracker
Over the past few years, there has been a rapid escalation in the number of economic security related policies and actions across the world. Governments are seeking to de-risk in areas of economic vulnerability and build competitive advantage in key sectors and technologies through tools such as export controls, tariffs, investment screening, industrial policy, supply chain diversification, domestic research and development support, and the pursuit of increased self-sufficiency.
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