It's been almost a year since President Trump opened a new chapter in the US’s economic history, dubbed “Liberation Day” by his administration, when he unveiled sweeping tariffs on dozens of countries.

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Since then, the administration’s aggressive trade policy – with threats of levies ratcheting up into triple digit territory – has strained relationships with longstanding allies and unsettled the rules based international trading system the US once championed.

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In response, U.S. trading partners have begun pursuing alternative strategies to limit the economic fallout. Among them is a renewed push for regional trade agreements (RTAs), such as the EU and India striking the “mother of all deals” last month and the trading bloc’s similar agreement with Mercosur.

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Trump continues to justify tariffs as a national security measure, in doing so, exposing loopholes in World Trade Organisation rules to sidestep core principles – while technically remaining within the system.

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The consequences are serious: they weaken the very foundations of the multilateral trading system that relies on non-discrimination, predictable rules and the gradual liberalisation of trade through negotiation rather than coercion.

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Many countries are now seeking to diversify trade ties and reduce dependence on the U.S. market, prioritising partnerships with economies that continue to uphold WTO norms and support open trade.

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Some analysts note that the surge in regional trade agreements reflects a long running global trend as governments look for progress outside a stalled WTO negotiating agenda.

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However, Trump’s “America First” protectionism appears to be accelerating the shift: countries seeking a more open trading environment – and looking to offset the impact of US tariffs – are likely to deepen cooperation through new, more innovative regional agreements.

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Five key types of RTAs

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According to the WTO, RTAs are any reciprocal trade agreements between two or more partners, not necessarily from the same geographic region. In descending order of economic integration, here are the main types of RTA:

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• Economic Union: The “fullest” RTA form incorporating a common market and customs union. Members seek to operate as a single economic bloc

• Common Market: A looser RTA form with many similar features, including a common market and customs union, but stopping short of the degree of policy alignment necessary for an economic union

• Customs Union: An RTA form confined to the free cross-border movement of goods between members and the adoption of common external tariffs and customs measures at the union’s external border

• Free Trade Agreement, Area or Association: Agreement to eliminate most trade barriers between members, but where there is no common external tariff or policy in relation to non-members

• Preference Schemes/Programmes: Typically unilateral, non-reciprocal market access schemes/programmes focused mainly on selective tariff relief for developing countries’ goods.