US‑EU tariff talks surge as Trump clinches Japan deal

US Trade Negotiations Under Trump Administration

“90 Deals in 90 Days” Promise

Trump’s Trade Agenda aimed to secure dozens of agreements before the August 1 deadline, yet the White House has confirmed only five deals to date.

Confirmed Agreements

• Japan–U.S. – A comprehensive pact that reduced tariffs and opened pathways for U.S. investment.
• Philippines–U.S. – A modest levy adjustment that lowered duty to 19%.
• Britain–U.S. – A bilateral framework pending final details.
• Vietnam–U.S. – A trade framework still under discussion.
• Indonesia–U.S. – A potential agreement that may ease mineral export restrictions.

Ongoing Negotiations

Key partners still engaged in talks include China, Canada, Mexico, and the European Union. Brussels has signaled progress, with German Chancellor Friedrich Merz expressing optimism about forthcoming decisions.

EU Discussion Highlights

• Proposed 15% tariff on imports, subject to sectoral carve‑outs.
• Ongoing deliberations on a US proposal involving critical mineral export relaxations.
• Further engagement expected with EU Trade Commissioner Maroš Šefčovič and U.S. Commerce Secretary Howard Lutnick.

China–U.S. Dialogue

Representatives will convene in Stockholm next week to address the August 12 deadline, following a temporary tariff reduction to mid‑August.

Japan–U.S. Deal in Detail

Trump highlighted the Japan agreement as a “massive deal” that would see US investment from Japan totaling $550 billion, with 90% of profits earmarked for the United States.

Key components include:

• Reduction of automotive tariffs from 25% to 15%.
• Maintenance of 50% steel and aluminum tariffs—not addressed in the agreement.
• Open market provisions for cars, trucks, rice, and selected agricultural goods.
• Promises of equity credit guarantees and funding for major U.S. projects.

The deal has lifted Japanese stock prices and the Nikkei index, with Toyota and Mitsubishi rising around 14% each.

Stakeholder Perspectives

• Japanese Prime Minister Shigeru Ishiba emphasized that the agreement would not harm Japan’s agricultural sector, particularly rice imports.
• Japan’s trade envoy Ryosei Akazawa confirmed the continuation of 50% tariffs on steel and aluminum.
• Business leaders await detailed provisions to gauge impact.

Philippines Deal Impact

The Philippines agreement represents a minor duty reduction, lowering levies to 19% after a meeting with President Ferdinand Marcos.

China’s Stance

China has called for “equal dialogue” following the Japan–U.S. agreement and supports the August 12 deadline in cooperation with Washington.

Conclusion

With the August 1 deadline looming, U.S. trade officials are monitoring negotiations closely, seeking to meet the Trump administration’s ambitious but limited track record on bilateral trade agreements.