Global trade tensions escalate with EU countermeasures, multiple new U.S. trade pacts unveiled

Trade tensions escalated on Wednesday as the European Union announced plans to impose 30% tariffs on over $100 billion worth of U.S. goods if a trade deal is not reached by August 1. The proposed retaliation includes items ranging from American whiskey to automobiles and Boeing aircraft, combining $24 billion in approved tariffs with a newly proposed $83 billion goods list.

Meanwhile, U.S. President Donald Trump finalized a major trade agreement with Japan, which includes a 15% tariff on Japanese imports and a $550 billion investment commitment into the U.S. economy. Trump called it “the largest deal in history with Japan.”

The White House also confirmed new trade deals with the Philippines and Indonesia. Under these agreements, Philippine imports to the U.S. will face a 19% tariff, while nearly all U.S. exports to the Philippines will be tax-free. Indonesian goods will be taxed at 19%, with a higher 40% rate applied to transhipped items, while 99% of U.S. exports will enter tariff-free.

While these developments mark short-term gains, prospects for larger trade agreements with India, Canada, and the EU remain uncertain. Trump has threatened sweeping 25% to 35% tariffs on these key partners and is reportedly preparing letters to over 150 other countries outlining new blanket tariff structures.