Trump unveils major Asia trade deals as deadline approaches

President Donald Trump announced new trade agreements with Japan, the Philippines and Indonesia this week as the Trump-imposed August 1 tariff deadline approaches.

The U.S.–Japan agreement reduces planned tariffs on Japanese exports from 25% to 15% in exchange for a $550 billion Japanese investment in U.S. infrastructure and expanded market access for American vehicles and farm products. While Japanese financial markets rallied following the announcement, reaction from political and business leaders was mixed.

Prime Minister Shigeru Ishiba described the deal as a turning point, though some leaders in Japan raised concerns about long-term effects on domestic industries. Earlier this month, Trump drew attention by sending a blunt warning letter addressed to “Mr. Japan,” threatening 25% tariffs unless a deal was reached by his self-imposed deadline.

The agreement with the Philippines sets a 19% tariff on Philippine exports to the U.S., a modest 1% reduction from Trump’s previous 20% threat. As part of the deal, Philippine President Ferdinand Marcos Jr. confirmed the Philippines will eliminate tariffs on imported American automobiles, a move expected to open up the domestic auto market to more U.S. brands. Marcos noted that “there’s still a lot of detail that needs to be worked out,” indicating further negotiation may be needed.

Indonesia will also face a 19% tariff, reduced from the 32% rate Trump had previously proposed. Indonesia has agreed to eliminate nearly all trade barriers for imports of U.S. goods, a move that government officials say will benefit both countries, while some industry leaders in Indonesia await more specifics.

These latest deals follow previously announced tariff changes with Vietnam and several Southeast Asian countries. Vietnam’s exports are set to face a 20% tariff, with double that rate for goods identified as being transshipped from China.

Southeast Asian countries such as Laos, Myanmar, Thailand and Malaysia will see tariffs ranging from 25% to 40% after Trump announced new rounds of “reciprocal” tariffs earlier this month.

Negotiations with China are ongoing, while talks with South Korea and the European Union are expected to continue as the August deadlines approach.