Trump's first trade deals: A look at the key agreements

Straits Times

31-07-2025

Sign up now: Get ST's newsletters delivered to your inbox
While many details regarding the trade deals with the US remain to be negotiated, the countries concerned made considerable concessions to Washington.
WASHINGTON – South Korea on July 30 became the latest exporter to complete a trade deal with the United States in a bid to limit damage from US tariffs taking effect on Aug 1.
The levies – agreed by Britain, the EU, Indonesia, Japan, the Philippines and Vietnam – are generally higher than the new base rate of 10 per cent that the United States has applied to most countries since April.
But they are lower than the levels of customs duty the administration of US President Donald Trump threatened to impose on Aug 1 if no deal was reached.
While many details remain to be negotiated under the deals, the countries concerned made considerable concessions to the US.
South Korea: 15 per cent
Mr Trump said on July 30 that the United States will impose a 15 per cent tariff on imports from South Korea, adding that Seoul will also invest US$350 billion (S$452 billion) in return.
The deal struck is below a 25 per cent rate that Mr Trump had threatened earlier, and on par with US trade deals with Japan and the European Union.
Mr Trump added that an additional unspecified 'large sum of money' will be invested by Seoul, to be announced when South Korean President Lee Jae Myung visits the White House for a meeting within the next two weeks.
Top stories
Swipe. Select. Stay informed.
Asia US-Malaysia tariff deal expected after Trump-Anwar phone call on eve of Aug 1 deadline
Asia Trump says US will set 15% tariff on South Korean imports under new deal
Business US Fed holds rates steady despite Trump's pressure, with two governors dissenting
Singapore Driver in 2024 Tampines crash that killed 2 set to plead guilty in October
Multimedia 60 years, 60 items: A National Day game challenge
Singapore $10 million Toto results to be announced on July 31, after no winners in last 3 draws
Sport Ainslee Kwang, 14, becomes first Singaporean diver to qualify for World Aquatics C'ships semi-finals
Singapore Escape, discover, connect: Where new memories are made
EU: 15 per cent
Mr Trump and European Commission President Ursula von der Leyen clinched a deal on July 27 that includes a baseline US tariff of 15 per cent in a bid to avert a full-blown trade war.
Mr Trump said the 15 per cent levy would apply across the board, including to Europe's crucial automobile sector, pharmaceuticals and semiconductors.
That is lower than the blanket 30 per cent tariffs Mr Trump had threatened to impose, but significantly higher than the duties in place to date.
As part of the deal, the 27-nation EU has agreed to purchase energy worth US$750 billion from the United States and make US$600 billion in additional investments, according to Mr Trump.
He said EU countries – which recently pledged to ramp up their defense spending within Nato – would be purchasing 'hundreds of billions of dollars' worth of military equipment'.
The two sides have agreed to bilateral tariff exemptions on a number of 'strategic products,' notably aircraft, certain chemicals, some agricultural products and critical raw materials.
France's minister for Europe, Mr Benjamin Haddad, said on July 28 the agreement was 'unbalanced' and Germany's BDI business federation said the accord would have 'considerable negative repercussions'.
Japan: 15 per cent
Under the terms of the trade deal that Japan agreed to with Washington, the country's exports will be taxed at 15 per cent instead of the threatened 25 per cent rate.
Crucially, that reduction includes the tariff on automobiles, an industry accounting for 30 per cent of Japanese exports to the United States in 2024.
Tariffs of 50 per cent on Japanese steel and aluminium will continue to apply.
The White House said that under the deal, Japan would make US$550 billion in investments in the United States.
Washington said it would retain 90 per cent of the profits from these investments and Japan would buy US$8.0 billion worth of US goods, including agricultural produce, aviation fuel and 100 Boeing planes.
Philippines: 19 per cent
Under an accord announced by the White House, the Philippines obtained a tariff reduction of one percentage point on its goods entering the United States.
Products from the South-east Asian country, a major exporter of high-tech items and apparel, will face a 19-per cent levy.
Britain: 10 per cent on average
London and Washington concluded a deal in May under which a 27.5-per cent tariff rate on cars dropped to 10 per cent for the first 100,000 vehicles per year, a major win for Jaguar Land Rover.
The deal also benefits the British aerospace sector, in particular jet engine manufacturer Rolls Royce, which won a tariff exemption.
London is still negotiating exemptions for its steel and aluminium products from the 25 per cent rate in force.
In return, Britain had to open its market further to US ethanol and beef, which has caused concern domestically.
The rest of Britain's products are subject to the 10 per cent base rate.
Vietnam: 20 per cent
Vietnam reached a deal in early July with the United States, its main export market for products including clothing and shoes.
The deal will see its shipments subject to a 20 per cent tariff, instead of the threatened 46 per cent rate.
But a 40 per cent tariff will be imposed on goods manufactured in third countries that use Vietnam to circumvent steeper trade barriers.
US goods will not face any tariffs entering Vietnam.
Indonesia: 19 per cent
Under a deal reached in mid-July, Indonesian exports to the United States will be taxed at 19 per cent, lower than the threatened rate of 32 per cent.
According to Washington, nearly all US goods will be able to enter Indonesia tariff free.
Moreover, it said Jakarta had agreed to recognise US standards for car and pharmaceutical imports.
Indonesia had already made other concessions earlier in July, pledging to buy more US oil and agro-industrial goods. AFP