Trump's tariff deadline nears: Where US trade deals stand

Indian Express

5 days ago

With US President Donald Trump's August 1 tariff deadline approaching, the US has announced a series of trade deals. Originally rolled out in April, Trump's sweeping tariffs were twice postponed to allow time for negotiations. Now, with days left, pressure is mounting on nations to reach final agreements or face steep levies.
'The August First deadline is the August First deadline — it stands strong, and will not be extended,' Trump wrote on Truth Social. Earlier in July, he'd described the date as 'firm, but not 100% firm.' But on July 9, two days before the original deadline, he signed an executive order pushing it to August 1.
The initial plan included a blanket 10% tariff on nearly all imports and up to 50% for select countries. Formal warning letters were sent to over two dozen world leaders, with many tariffs echoing April's rates, but some were increased significantly.
Here's where major US trade relationships stand:
On July 30, Trump announced a deal with South Korea imposing a 15% tariff on its exports. In return, South Korea agreed to buy $100 billion in US energy products and invest $350 billion in US-controlled projects. These investments [are] 'owned and controlled by the United States, and selected by myself, as president,' Trump said, as per AP.
A July 27 framework with the EU reduced a threatened 30% tariff to 15% on 70% of European exports, including pharmaceuticals, semiconductors, and automobiles. The remaining 30% is still under discussion. European Commission President Ursula von der Leyen said both sides agreed to zero tariffs on certain 'strategic' goods. Trump cited $750 billion in European energy investments over three years, plus a nonbinding pledge of an additional $600 billion.
On July 22, Japan agreed to a 15% tariff on its exports, down from a proposed 25%. Trump said Japan committed to investing $550 billion in the US and opening its market to American autos and rice. Japanese automakers, including Toyota and Honda, welcomed the relief after months of 25% tariffs on vehicles and parts. However, other nations fear it may give Japan a competitive edge.
Following a July 22 meeting with President Ferdinand Marcos Jr., Trump announced a slight tariff cut to 19%, just below the earlier 20% threat. In exchange, US goods would face no tariffs in the Philippines. Marcos said his country was considering options , including a tariff-free regime for US cars, though full terms remain unclear.
On July 15, Trump said tariffs on Indonesian goods would be lowered to 19%, while US exports would be largely duty-free. A White House fact sheet confirmed over 99% of US products would qualify. Indonesian President Prabowo Subianto said negotiations are ongoing to further reduce tariffs.
Trump's July 2 deal with Vietnam allows US goods duty-free entry. Vietnamese exports will face a 20% tariff, down from a proposed 46%. Additionally, the US will impose a 40% 'transshipping' tax to block Chinese goods routed through Vietnam.
A May 8 deal with the UK lowered US tariffs on British autos, steel, aluminum, and more, while the UK reduced duties on items like olive oil and wine. Implementation lagged until June, when Trump hiked global steel and aluminum tariffs to 50%. The UK was exempted from that hike but still faces a 25% tariff, making it the only country with partial relief.
In May, the US and China agreed to reduce peak tariffs, 145% on Chinese goods and 125% on US goods, to 30% and 10%, respectively, during a 90-day truce. US Treasury Secretary Scott Bessent said China pledged to ease restrictions on rare earth minerals vital to American manufacturing. China confirmed that the US would lift some 'restrictive measures.' On July 29, officials met in Stockholm to discuss extending the August 12 deadline for new tariffs. While extension plans were explored, no decision was announced.
(With inputs from AP)