This coming Friday, a fresh wave of U.S. tariffs is set to take effect, a move from the Trump administration that could inject even more volatility into the already shaky global economy.
Many nations have been watching this moment approach for months. The original implementation, set for April 2—dubbed “Liberation Day”—was delayed first to July 9 and now again to August 1. But time is running out.
President Trump had previously boasted of “over 200 deals” in an interview with Time, and his trade advisor, Peter Navarro, had floated the ambitious target of “90 deals in 90 days.” The reality has fallen far short. So far, just eight trade agreements have been finalized in 120 days, including one with the European Union.
Countries With Trade agreements So Far
| Country | Date Announced | Tariff Rate After Agreement | Tariff Rate Before Agreement |
|---|---|---|---|
| UK | May 8 | 10% | 25% |
| Vietnam | July 2 | 20% | 46% |
| Indonesia | July 15 | 19% | 32% |
| Philippines | July 22 | 19% | 20% |
| Japan | July 23 | 15% | 25% |
| EU | July 27 | 15% | 30% |
| South Korea | July 31 | 15% | 25% |
| China* | May 12 (Talks Ongoing) | 30% | 145% |
*Note: China has not signed a final trade agreement; the current rate reflects a temporary suspension.
United Kingdom: Early Mover, Unsettled Terms
The U.K. was the first to lock in a deal with the U.S. back in May. The agreement sets a 10% base tariff on British goods, alongside exemptions and quotas for specific sectors like automotive and aerospace.
However, after President Trump and Prime Minister Keir Starmer met in Scotland, some key points are still up in the air—especially regarding steel and aluminum tariffs. Discussions around the U.K.’s digital services tax are also ongoing, with the U.S. pushing for its removal.
Vietnam: A Surprising Outcome
Vietnam quickly followed suit, reaching an agreement announced on July 2. Under this deal, tariffs were reduced dramatically—from 46% to 20%. The issue of transshipping, where goods are rerouted through Vietnam to avoid direct tariffs, remains murky. Trump asserted that U.S. businesses would enjoy full access to Vietnamese markets.
However, Politico reported that Vietnamese officials were expecting a much lower 11% rate and were caught off guard by the 20% figure Trump imposed unilaterally.
Indonesia: Tariff Cuts with Broader Commitments
Indonesia finalized its deal on July 15, bringing its tariff rate down from 32% to 19%. According to the White House, Indonesia has agreed to drop nearly all tariff barriers for U.S. exports, including agricultural and energy products. The agreement also includes a commitment to remove other market access restrictions that have historically made it difficult for American firms to compete.
Philippines: Small Cut, Big Praise
Manila’s agreement, announced on July 22, saw only a slight decrease in tariffs—from 20% to 19%. Still, Trump hailed it as a step toward a more open market. He also hinted at increased military cooperation between the two countries, although no specifics were provided.
The U.S. and the Philippines already share a long-standing defense pact dating back to 1951.
Japan: Major Economic Investment
Japan reached its agreement on July 23, cutting tariffs from 25% to 15%. This deal also marks the first time the U.S. has granted a lower tariff rate specifically for automobiles—one of Japan’s largest export sectors.
Trump praised the agreement as one of the most significant trade deals ever, claiming Japan would invest $550 billion in the U.S., with America taking in 90% of the resulting profits. Despite the celebratory tone, negotiations were tense, with Trump calling Japan “tough” in talks and criticizing the country for not accepting U.S. rice despite reported shortages.
European Union: Hard Bargain, Mixed Reactions
The EU recently reached an agreement with Washington, bringing its base tariff rate down to 15%, a steep drop from the previously threatened 30%. Auto tariffs also fell to 15%, and duties on products like aircraft and generic drugs were rolled back to earlier levels.
Not all in Europe are celebrating. France’s Prime Minister called the deal a “dark day,” while the EU trade commissioner described it as the best possible outcome under intense pressure.
South Korea: Big Investment, Familiar Terms
South Korea joined the list of U.S. trade partners just last Thursday, receiving terms similar to Japan’s. The country accepted a 15% across-the-board tariff, including on car exports.
Trump announced that South Korea would commit $350 billion in U.S.-based investments, with the American side reportedly collecting 90% of the profits. Korean President Lee Jae Myung emphasized that the fund would facilitate Korean business entry into key sectors like shipbuilding and semiconductors within the U.S.
China: No Deal Yet, Just Suspensions
Unlike other countries, China has yet to secure a formal agreement. Instead, it has engaged in a series of temporary suspensions and reciprocal hikes. Tariffs initially hit 34% and later ballooned to 145% for Chinese goods entering the U.S. and 125% for American products going into China.
Both sides agreed in May to ease tensions and temporarily reduce tariffs, but that truce is set to expire on August 12. The most recent talks in Stockholm ended without progress, and U.S. Treasury officials say that any new extension would need Trump’s direct approval.
Nations Without Deals
| Country | Current Threatened Tariff Rate |
|---|---|
| Canada | 35% |
| Mexico | 30% |
| India | 25% + unspecified “penalty” |
| Australia | 10% |
Countries without finalized trade agreements can expect to be hit with baseline tariffs ranging from 15% to 20%, up from the 10% rate set earlier this year. Those running trade surpluses with the U.S. are more likely to face higher rates under Trump’s “reciprocal” tariff approach.
India: Facing Tariffs and a Penalty
Trump imposed a 25% tariff on Indian imports on Wednesday, along with an additional, unspecified “penalty.” The president cited India’s high tariff environment and its purchases of Russian military and energy products as the main reasons.
Although slightly lower than the 26% rate announced back in April, the current tariff places India at the higher end of Trump’s intended scale.
Canada: Tariff Pressure Mounts
Canada is bracing for a 35% tariff starting August 1, with the possibility of increases if retaliatory actions are taken. Trump has previously raised concerns about pharmaceuticals entering the U.S. from Canada.
Prime Minister Mark Carney recently described the situation as being in an “intense phase” of negotiations, suggesting that any final deal would almost certainly include some tariffs.
Mexico: Stalemate Continues
Despite pressure, Mexico has not yet reached an agreement. Trump has cited illegal immigration and drug trafficking as reasons for imposing a 30% tariff, warning that retaliation would be met with even tougher measures.
Mexican officials say they’re eager to reach a resolution before the deadline, but recent talks haven’t shown much movement.
Australia: Quiet but Vulnerable
Australia currently enjoys a 10% baseline tariff, thanks in part to its trade deficit with the U.S. and an existing free trade agreement. However, that rate could rise if Trump decides to lift the global baseline to 15%-20%.
There’s been little sign of active trade discussions between Canberra and Washington. Australia recently eased restrictions on U.S. beef imports—a move the U.S. credited to Trump, though Prime Minister Albanese denied any external pressure.
