As global markets eye rising geopolitical tensions and volatile trade dynamics, recent news from the White House signals a possible turning point. U.S. President Donald Trump’s latest trade deal with Japan is sparking optimism that the world economy may sidestep the harshest of tariffs — even though many of America’s major trading partners still remain without agreements.
✅ Countries with U.S. Trade Deals in 2025
Following the U.S.–Japan trade agreement, other countries that have finalized trade deals with the Trump administration include:
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United Kingdom
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Vietnam
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Indonesia
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Philippines
Additionally, a preliminary trade pact with China has paused steep tariffs until at least August 12, 2025, offering temporary relief to businesses across the globe.
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⚠️ Countries Without Trade Agreements Face Steep Tariffs
Despite the recent progress, countries like Canada, Mexico, South Korea, India, and the European Union (E.U.) are still in ongoing negotiations. Many of these countries face increased U.S. tariffs, some as high as 50%, if no agreements are reached by August 1, 2025.
In early July, Trump sent formal letters to over 20 nations warning them of elevated tariff levels. Interestingly, India and Taiwan were not included in that communication — a strategic move, according to analysts.
📊 Tariff Comparison Table: Who’s Safe and Who’s at Risk?
| Trading Partner | Trade Deal? | Tariff in Deal | Threatened Tariff (July) | Previous Tariff (April) |
|---|---|---|---|---|
| Japan | ✅ Yes | 15% | 25% | 24% |
| United Kingdom | ✅ Yes | 10% | N/A | 10% |
| Vietnam | ✅ Yes | 20% | N/A | 46% |
| Indonesia | ✅ Yes | 19% | 32% | 32% |
| Philippines | ✅ Yes | 19% | 20% | 17% |
| China | ⚠️ Preliminary | 30% | N/A | 145% |
| European Union | ❌ No | N/A | 30% | 20% |
| Canada | ❌ No | N/A | 35%* (USMCA exempt) | N/A |
| Mexico | ❌ No | N/A | 30%* (USMCA exempt) | N/A |
| South Korea | ❌ No | N/A | 25% | 25% |
| India | ❌ No | N/A | N/A | 26% |
| Brazil | ❌ No | N/A | 50% | 10% |
*Note: Canada and Mexico are temporarily exempt under the USMCA framework.
🔍 What This Means for Global Markets and Investors
According to Howard Lutnick, U.S. Commerce Secretary, the Japan trade deal could be the blueprint for future negotiations — particularly with the European Union, which faces a tariff cliff on August 1 if no agreement is reached.
Market experts like Terry Haines of Pangaea Policy suggest that the existence of deals matters more than the specifics. “They reduce uncertainty, fuel momentum, and boost investor confidence,” Haines said.
Meanwhile, Wolfe Research’s Tobin Marcus noted that Japan’s 15% tariff rate may become a new global floor, with 19%-20% rates likely for countries that don’t make high-value concessions.
📈 Trending Now: Will the EU Strike a Deal Before August 1?
Multiple reports now indicate the EU and U.S. may finalize a deal soon, potentially securing the same 15% tariff rate as Japan. Until then, however, uncertainty looms — and markets are watching closely.
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