Trump Announces Trade Deals with Philippines, Indonesia, and Japan

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Jul. 23, 2025
By: Marvin E. McPherson

Since the announcement of “reciprocal” tariffs in April the White House has talked about the trade deals it would negotiate in light of the tariffs. This week the White House announced three such deals, although at this writing there are not documents clarifying the details of the deals. The announced deals are with the Philippines, Indonesia and Japan.

Under the apparent agreement with Indonesia, imports from Indonesia will be subject to 19% tariffs. U.S. imports into Indonesia will enter duty free on 99% of all U.S. exported products which include agricultural products, health products, seafood, information and communications technology, automotive products, and chemicals. Furthermore, Indonesia has apparently agreed to address non-tariff trade barriers such as accepting U.S. standards for U.S. built vehicles, and FDA certified pharmaceuticals.

As announced on social media, the apparent Philippines deal subjects goods from the Philippines 19% tariffs, while American goods shipped to the Philippines will enter duty free. No further details are yet available.

The announced trade agreement framework with Japan would impose 15% “reciprocal” tariffs on Japanese goods exported to the United States. This includes automobiles and car parts. The irony of this agreement is that Japanese transplant automobile factories in the United States will likely be at a competitive disadvantage with Japanese automobile factories in Japan. For instance, while the steel used to build a Toyota in Kentucky would bear a 50% duty, the same steel used in Japan and shipped as a finished vehicle would bear a 15% duty.

One important aspect of these deals that is yet to be clarified is the intent of the United States to apply higher duties on “transshipped” material. Depending on what the administration ends up meaning by “transshipping” it will address an activity that already subjects goods to higher duties or will create an entirely new analysis for global supply chains and origin determinations. How such a change would work in light of existing law is also not clear.

Commerce Secretary Howard Lutnick stated that “Nothing stops countries from talking to us after August 1, but they’re going to start paying the tariffs on August 1.”  We expect to see more tentative agreements in the coming weeks. and will update you as information becomes available.

If you have questions about the trade agreements or current tariff rates on products, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.