With just over 60 days to go until President Donald Trump’s reciprocal tariffs are set to snap into force, the race to do trade deals with the US is expanding beyond a few export powers in Asia.

Next week, the European Union is planning to share a paper with the US that will set out a package of proposals to kick-start trade negotiations with Washington, our Bloomberg colleagues in Brussels and London reported late Wednesday. 

Brussels will propose lowering trade and non-tariff barriers, boosting European investments in the US, cooperating on global challenges such as tackling China’s steel overcapacity, and purchasing US goods like liquefied natural gas and technologies, according to people familiar with the matter.

Read More: France Seeks Small Parcel Fees as Flows From China Surge

Meanwhile, China — perhaps sensing that Trump’s tariffs could lead to a reset of relations with the EU — removed sanctions against European lawmakers.

These developments landed just as Eurostat reported the euro-area economy grew 0.4% in the first quarter, exceeding expectations and marking the fifth consecutive quarter of growth. Yet business surveys suggest a weaker economy ahead, mainly due to uncertainty over US trade policies.

And according to new research by the European Central Bank, European consumers are prepared to actively move away from US products and services as a result of Trump’s trade war.

Political Risk

Tariff nervousness is also spreading on Capitol Hill in Washington. Trump barely repelled a challenge to his global trade offensive in the Republican-controlled US Senate. The chamber tied 49-49 in a vote Wednesday on a resolution to end the barrage of import taxes the president announced earlier this month on China and most other US trading partners. 

Read More: Trump Says He Deserves a ‘Pass’ on Data Showing GDP Contraction

During a town hall, Trump acknowledged that his tariff program risked imperiling him politically, but said he would not rush deals to appease nervous investors.

Trump’s trade representative said that the US was nearing an announcement of a first tranche of trade accords. India, Japan and South Korea are said to be among the furthest along in the process. 

“I would say that we have deals that are close,” Trade Representative Jamieson Greer said in an interview with Fox News. “As a negotiator, I don’t like to negotiate in public, but I will say we’re talking about a matter of weeks and not months, to have some initial deals announced.”

—Brendan Murray in London

Bloomberg’s tariff tracker follows all the twists and turns of global trade wars. Click here for more of Bloomberg.com’s most-read stories about trade, supply chains and shipping

Charted Territory

Key indicators | Explore Trump’s first 100 days in several economic charts. His tariffs have led to a surge in imports, a record trade gap, and uncertainty throughout the economy, causing anxiety about the future job market and inflation.

What does India stand to gain from the US trade war with China? Host Stephanie Flanders, Bloomberg’s head of government and economics, speaks about this first potential deal tied to Trump’s trade war with Bloomberg senior editor Chris Anstey and reporter Shruti Srivastava, as well as Bloomberg Economics senior India economist Abhishek Gupta. 

Listen here and subscribe on Apple, Spotify, or wherever you get your podcasts.

Today’s Must Reads

• South Korea’s export growth stalled in April in a worrisome sign for the trade-driven economy as officials scramble to cope with US tariffs. Elsewhere, UK factories were hit by the biggest plunge in overseas orders in five years. 
• America’s toymakers outsourced manufacturing to China in the 1980s to cut costs. Nearly half a century later, that decision could bankrupt them. 
• Caterpillar expects slightly lower sales this year if Trump administration tariffs remain in place and the economy dips into a recession in the second half.
• The Trump administration asked the US trade court to reject a lawsuit by small businesses challenging the president’s global tariffs, arguing that judges don’t have the authority to review the national emergency he invoked to justify the sweeping levies.
• Trump says China will likely bear the brunt of his 145% tariff on the world’s second-largest economy. But prices from some of the most popular sellers of made-in-China goods already suggest US shoppers will be paying a major portion of the bill.
• Rivian Automotive quietly built a reserve of electric-vehicle batteries from Asia ahead of US tariffs, giving the company a measure of insurance against the upheaval in trade policy now pressuring the automotive supply chain. Meanwhile, Airbus said it won’t cover the cost of tariffs on its planes imported by US airlines, setting up a clash with carriers.
• Quebec’s minister of finance said he predicts an economic slowdown for Canada in the second quarter and recession later in the year if the country can’t come to an agreement that ends its trade dispute with the US. 

On the Bloomberg Terminal

• The Shanghai Containerized Freight Index dipped another 1.7% sequentially to 1,348 in the week ended April 25, the second consecutive decline. Spot rates for cargoes departing China are likely to slide further in the coming weeks, Bloomberg Intelligence says. 
• Shanghai east-to-west airfreight rates were flat sequentially in April at $3.10 a kilogram and are 15.5% lower than last year, based on data from Drewry. Rates may face pressure from Washington’s protectionist policies, which could pull forward demand, according to Bloomberg Intelligence.
• The world’s big industrial-scale consumers of oil are flashing warning lights for demand as the tariff war causes the outlook for the global economy to deteriorate. 
• For Bloomberg Economics trade analysis: BECO MODELS TRADE.
• Click here for Bloomberg Intelligence’s Tariff Matrix.
• Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
• Use the AHOY function to track global commodities trade flows.
• See DSET CHOKE for a dataset to monitor shipping chokepoints. 
• For freight dashboards, see BI RAIL, BI TRCK and BI SHIP and BI 3PLS
• Click HERE for automated stories about supply chains.
• On the Bloomberg Terminal, type NH FWV for FreightWaves content.
• See BNEF for BloombergNEF’s analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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