United States Announces Trade Deals With Three Countries And The EU

Over the past few weeks, the U.S. government has struck tentative trade deals with three counties. First, the White House released text of a framework agreement with Indonesia. According to a White House fact sheet, under the draft pact, Indonesia will:

• Eliminate tariff barriers on approximately 99 percent of U.S. industrial and agricultural exports;
• Remove restrictions on exports to the United States of industrial commodities, including critical minerals;
• Accept U.S. standards and certifications for motor vehicles, medical devices, and pharmaceutical products;
• Exempt certain U.S. products from local content requirements;
• Allow the import of U.S.-remanufactured goods;
• Join the Global Forum on Steel Excess Capacity;
• Work with the U.S. government to address the unfair practices of other countries, including China, and to cooperate on export controls, investment security, and combatting duty evasion; and
• Purchase U.S. aircraft, agricultural products, and energy products.

In exchange, the U.S. government will reduce tariffs on goods coming in from Indonesia from 32 percent to 19 percent. The agreement also allows for the U.S. government to “identify certain commodities not naturally available or domestically produced for further reduction in the reciprocal tariff rate.”

Next, on July 22, the White House announced it has reached an agreement with Japan. Under that outline, goods coming into the United States from Japan would face 15 percent tariffs, a number that is lower than the 25 percent tariff rates President Donald Trump had been threatening. The deal also calls for Japan to invest $550 billion in the United States.

Third, President Trump announced on social media that his administration had reached a deal with the Philippines that is focused on tariffs and market access. Under that draft pact — the full details of which have not been revealed — imports from the Philippines into the United States would be subject to a 19 percent tariff while U.S. exports to the Philippines would have full market access and face no tariffs. Read more.

Finally, on July 27, President Trump announced the United States had reached a trade agreement with the European Union (EU)  that would impose a 15 percent tariff rate on its goods. The president also said the EU agreed to buy more than $750 billion worth of U.S. energy, as well as invest $600 billion on top of the bloc’s existing commitments in the United States, and open its markets for U.S. manufacturers. Read more from AXIOS. In related news: as Supply Chain Dive reported, the European Commission approved regulation that would install levies of up to 30 percent on numerous U.S. goods starting Aug. 7, 2025. That regulation also calls for a suspension of steel, iron, and aluminum scrap exports to the United States, effective Sept. 7.