Trump Expands Tariff Agenda with Japan Deal, EU Negotiations, and Import Duties Across Asia

The U.S. strikes a trade deal with Japan and imposes new tariffs on Asian imports, signaling a broader shift in trade strategy as negotiations with the EU progress.

On Tuesday, President Donald Trump announced a new trade agreement with Japan, describing it as a “massive” deal. The agreement includes a 15% reciprocal tariff on Japanese exports to the United States and outlines a $550 billion investment from Japan into the U.S. economy. Trump said the United States “will receive 90% of the profits” from the deal and noted that Japan would expand access to its market for American automobiles, rice, and other agricultural products.

Japanese Prime Minister Shigeru Ishiba confirmed the tariff on Japanese auto exports to the U.S. will be lowered from 25% to 15%.  “We believe that this will contribute to the creation of jobs, the production of good products, and the fulfillment of various roles in the world through the mutual cooperation of Japan and the US,” Japanese Prime Minister Shigeru Ishiba said.

Japan’s top trade negotiator, Ryosei Akazawa, explained that the Japanese injection of $550 billion into the US would be in the form of equity and loan to support Japanese businesses’ investments in key fields such as pharmaceuticals and semiconductors. Akazawa also noted that discussions with the U.S. will continue on other trade matters not included in the current agreement, including steel and aluminum tariffs, which remain at 50%.

Earlier in the day, President Trump announced that the U.S. will place a 19% tariff on imports from the Philippines, while U.S. exports to the Philippines will be exempt from tariffs. A matching 19% tariff will apply to goods coming from Indonesia, with nearly all U.S. exports to Indonesia—99%—receiving duty-free access. According to U.S. officials, Indonesian imports containing a high percentage of foreign materials, particularly from China, will face tariffs up to 40%.

The United States is also nearing a trade deal with the European Union that would apply a 15% tariff to most EU imports. While some exemptions are under discussion—including for aircraft and medical devices—the EU has proposed reducing its average 4.8% most-favoured-nation tariff to zero for certain products to secure better terms.  Sources say the 15% tariff would serve as the total rate applied—replacing, not adding to, existing import duties. If President Trump rejects the deal, the EU is prepared to retaliate with apx. $109 billion in tariffs on U.S. goods and may invoke a new anti-coercion law targeting U.S. services, including tech. A final decision from the White House is pending.

Separately, the U.S. Commerce Department announced plans to impose a 93.5% tariff on graphite imports from China, based on preliminary findings from an ongoing antidumping investigation. The department cited concerns over subsidies and pricing practices by Chinese exporters. Final determinations on the tariff rates are expected in December.

For more information, see:

The Guardian, EU and US nearing trade deal that would put 15% tariffs on imports from bloc, July 23

CNN, Trump announces ‘massive’ trade agreement with Japan, July 22

CNBC, White House releases U.S.-Indonesia trade deal framework, final talks underway, July 22

BBC, Philippines goods to face 19% tariff, Trump says, July 22

Supply Chain Dive, US preps 93.5% tariff on graphite from China, July 21

Supply Risk Solutions, U.S. Gives Notice of Sweeping Tariff Hikes on August 1 Amid Stalled Trade Talks, July 14

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