U.S. Seals Deals with Indonesia, Japan, and the Philippines Ahead of August 1 Tariffs

US DEALS WITH INDONESIA, JAPAN AND PHILIPPINES

With just days left until August 1st, when a new wave of U.S. tariffs is set to take effect, some countries have successfully struck deals with Washington to ease the impact on their exports. These agreements, along with retaliatory measures from the European Union and updates on negotiations with other key nations, signal major shifts for global supply chains.

Here’s what you need to know:

1. New Trade Agreements with Indonesia, Japan, and the Philippines

To avoid the steep tariffs initially announced earlier this year, Indonesia, Japan, and the Philippines have negotiated new frameworks with the U.S. Each deal comes with reduced tariff rates and significant concessions to improve U.S. market access.

Indonesia: Tariffs Drop to 19%

Imports from Indonesia will now face a 19% tariff, down from the previously announced 32%. In exchange, Indonesia will eliminate 99% of tariffs on U.S. industrial products, health goods, and agricultural exports.

The agreement also includes:

  • Removal of local content requirements for U.S. goods.
  • Recognition of U.S. standards for vehicles, pharmaceuticals, and medical devices.
  • Reforms in labeling and licensing rules, plus IP protection commitments.
  • Expanded digital trade and data flow allowances.
  • Environmental and labor commitments, including a ban on goods made with forced labor.

Impact: U.S. businesses exporting to Indonesia can expect fewer non-tariff barriers, while importers benefit from a lower-than-expected duty rate.

Japan: Strategic Investment and Market Access

The U.S.–Japan Strategic Trade and Investment Agreement reduces tariffs on Japanese imports to 15% (from the proposed 25%) and secures massive investment commitments:

  • $550 billion in Japanese investment targeted at U.S. infrastructure, semiconductors, critical minerals, pharmaceuticals, and shipbuilding.
  • Agricultural benefits include a 75% increase in U.S. rice imports and $8 billion in U.S. grain and biofuel purchases.
  • Expanded U.S. energy exports, including a potential Alaskan LNG deal.
  • Market access for U.S. automobiles and industrial goods, plus Japanese removal of key import restrictions.

Impact: U.S. exporters to Japan gain unprecedented access, while importers face moderate tariffs instead of severe cost increases.

Philippines: 19% Tariff with Partial U.S. Market Openings

The Philippines negotiated a 19% tariff on exports to the U.S. (slightly below the 20% previously announced). In return, it will open select markets to U.S. goods, particularly automotive, soy, wheat, and pharmaceuticals. Negotiations for broader zero-tariff access on U.S. products are ongoing.

2. EU Retaliatory Measures Loom

As the U.S. prepares to impose a 30% blanket tariff on EU imports starting August 1, the European Union has approved a €93 billion countermeasure list targeting U.S. goods. Sectors include aircraft, autos, wine, and medical equipment. The EU’s tariffs will kick in on August 7 unless a last-minute deal is reached. Negotiators hint at a compromise like the U.S.–Japan framework, potentially settling on a 15% baseline tariff.

3. China and Other Negotiations

  • China: Current effective tariff rate remains at 55% under a truce that expires August 12. Talks are underway for an extension, with potential 90-day rollovers.
  • India: Faces possible 100% secondary tariffs if it continues buying Russian oil.
  • Smaller Economies: The U.S. will maintain a 10% baseline tariff, though President Trump has floated an increase to 15–50%, adding uncertainty for exporters in Latin America, Africa, and the Caribbean.

What Businesses Should Do Now

With these developments unfolding rapidly, businesses should act now to mitigate risk:

  • Accelerate shipments before August 1 to avoid higher tariffs.
  • Review contracts to clarify tariff responsibility between buyers and sellers.
  • Diversify suppliers to hedge against trade volatility.
  • Reevaluate inventory and warehousing strategies to offset potential cost spikes.

GLC Can Help You Navigate These Changes

At Global Logistical Connections (GLC), we provide expertise and end-to-end solutions to keep your supply chain moving, no matter how complex the trade environment becomes. From customs brokerage to freight forwarding and strategic consulting, we help businesses stay compliant, competitive, and connected.

Contact us today to prepare for the August 1 deadline and beyond.