The global “reciprocal tariffs” plan introduced by US President Trump is set to officially take effect this Friday, August 1st. In recent days, many countries have accelerated their pace to reach a series of trade agreements with the White House in order to mitigate the impact of high tariffs.
Trump announced as early as April 2nd that “reciprocal tariffs” would be imposed on dozens of countries, with tariff rates calculated based on bilateral trade deficits. However, due to strong market response, he later temporarily lowered the rates to 10% and granted a 90-day negotiation buffer to various countries.
As the deadline for implementation approaches, countries that have not reached agreements may face tariffs of over 30%. However, several countries have swiftly signed trade agreements with the United States. Here are the key countries that have successfully reached agreements with the US and summaries of their agreements:
Japan ▼
Last week, the US and Japan reached an agreement setting tariffs at 15%, much lower than Trump’s initial threat of 25%. In addition, Japan agreed to open its market to US automobiles, rice, and other agricultural products, and to invest $550 billion in US projects.
European Union (EU) ▼
On Sunday (July 27th), Trump announced an agreement with the EU, with the US imposing a 15% tariff on European goods, lower than the originally proposed 30%. In exchange, the EU will purchase $750 billion worth of energy products from the US in the coming years, and will additionally invest $600 billion in the US.
The Philippines and Indonesia ▼
The White House also concluded negotiations with some Southeast Asian countries last week. The Philippines will see a reduction in export tariffs to the US from 20% to 19%. Indonesia also reached a similar agreement with a tariff set at 19%. The Philippines will have “zero tariffs” on US goods, and Indonesia agreed to purchase about $15 billion of US energy products, $4.5 billion of US agricultural products, and 50 Boeing jetliners.
Vietnam ▼
Vietnam proactively engaged in talks with the US and held two rounds of negotiations in May. On July 2nd, the US announced an agreement with Vietnam: goods exported from Vietnam to the US will face a 20% tariff, and goods transshipped through Vietnam from third countries will be subject to a punitive 40% tariff. In exchange, Vietnam will have zero tariffs on US goods. The two sides have not yet signed a formal contract, and details are still under negotiation.
United Kingdom ▼
Trump reached a significant agreement with the UK in early May, setting tariffs at 10%, lower than the previously announced 25%. The UK can export up to 100,000 cars to the US annually with a 10% tariff benefit, which is a great boost for the UK automotive industry. Trump is expected to meet with UK Prime Minister Keir Starmer in Scotland on Monday (July 28th) to discuss the implementation of the agreement. The UK is expected to commit to open imports of American beef, ethanol, and other agricultural products.
China ▼
The US and China preliminarily reached an agreement at the end of May, deferring a trade war. The US will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on US goods from 125% to 10%. Additionally, both sides currently retain a basic 10% tariff rate. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will hold the third meeting of the year in Stockholm on Monday, with Beijing expected to demand the removal of the 20% tariff related to fentanyl by the US.
In a notice issued by the White House this month, countries that have failed to reach agreements with the US will face the following tariffs starting August 1st:
– Canada: 35%
– Mexico: 30%
– South Korea: 25%
– South Africa: 30%
– Kazakhstan: 25%
– Laos: 40%
– Malaysia: 25%
– Myanmar: 40%
– Tunisia: 25%
– Bosnia and Herzegovina: 30%
– Bangladesh: 35%
– Serbia: 35%
– Cambodia: 36%
– Thailand: 36%
– Libya: 30%
– Iraq: 30%
– Algeria: 30%
– Moldova: 25%
– Brunei: 25%
– Sri Lanka: 30%
– Brazil: 50%
Earlier this month, Trump stated that for trading partners who have not received notice letters, tariffs may be raised across the board to 15%-20% to replace the current 10% base rate. He emphasized that this tariff measure will no longer be postponed. Tariff rates for Taiwan and India, both among the top ten countries with trade deficits with the US in 2024, have not been disclosed.
However, US Secretary of Commerce Howard Lutnick pointed out on Sunday that even with the tariffs in effect, Trump remains open to continuing negotiations.
(Reference: Reports from “The Hill”)