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As the Trump administration doubles down on tariffs, U.S. allies are increasingly seeking trade deals with each other (The Wall Street Journal, subscription).

Everyone’s doing it: “On Tuesday, the U.K. and India announced the completion of a trade agreement that had been stuck for several years.”

• “The EU is negotiating its own deal with India and recently agreed on one with South America’s Mercosur trading bloc. Canada and Asian countries are also dusting off old trade deals.”
• “The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a trade club consisting of 12 countries, is considering new applicants, including Costa Rica and Indonesia.”

The strategy: While U.S. allies are working on trade deals with the Trump administration, they are also trying a second tactic: beefing up cooperation with other allies to offset their restricted access to the U.S. market, according to one analyst.

• Despite this compensating activity, the impact of the Trump administration’s 10% global tariffs has been considerable: “Global goods trade volumes will fall by 0.2% this year, compared with an increase of 2.9% last year, according to estimates last month by the WTO.”

Jumpstart: The Trump administration’s tariffs pushed the U.K. and India to finally complete a trade deal that had been in development since 2022.

• The extensive deal sees big cuts in Indian tariffs on British whiskey and cars, among other products, with corresponding cuts to British tariffs on Indian footwear and jewelry. It also loosens immigration restrictions on Indian professionals seeking to enter the U.K.
• As for the economic benefit, “… the British government claimed [the deal] will boost bilateral trade between the nations by 25.5 billion British pounds (the equivalent of just over U.S. $34 billion) in the coming years.”

Europe, too: During European Commission President Ursula von der Leyen’s visit to India in February, she said the EU intends to secure a trade deal with India by the end of 2025. 

• Meanwhile, “EU officials launched trade talks with the United Arab Emirates last week, and the bloc’s ongoing negotiations with Indonesia, the Philippines, Thailand and Malaysia are being accelerated, Trade Commissioner Maroš Šefčovič told EU lawmakers on Tuesday.”

The NAM says: “Manufacturers in the U.S. have an opportunity to come out ahead if the administration can land deals over the next two months that lock in zero-for-zero tariff deals on industrial products—at least as a down payment—with our key trading partners,” said NAM Vice President of International Policy Andrea Durkin.