The European Union announced Wednesday it is preparing to impose 30% tariffs on more than $100 billion worth of U.S. goods if a trade agreement with the U.S. isn’t reached by August 1.
According to Bloomberg News, the European Commission plans to consolidate $24 billion in already approved tariffs with an additional proposed $83 billion worth of levies. The countermeasure package would target a wide range of American products, including whiskey, automobiles, and Boeing aircraft.
While the EU prepares its response, President Trump revealed progress on several trade fronts. Most significantly, he announced a major trade agreement with Japan.
“I just signed the largest deal in history with Japan,” Trump said. The agreement includes a 15% tariff on Japanese imports to the U.S., while Japan has committed to investing $550 billion into the American economy.
Earlier in the week, Trump also confirmed a new trade deal with the Philippines. Under that agreement, Philippine imports will face a 19% tariff, while U.S. exports to the Philippines will be exempt from import taxes.
Additionally, the White House disclosed more details about a finalized agreement with Indonesia. As reported by Yahoo Finance’s Ben Werschkul, Indonesian goods will be subject to a 19% tariff, and a 40% tariff will apply to goods re-exported or “transhipped” through other countries. U.S. imports into Indonesia, however, will remain tax-free in 99% of cases.
These developments come as hopes for larger trade agreements with the EU, India, and Canada appear to be fading. Trump has floated the possibility of imposing 25% to 35% tariffs on those major trading partners if negotiations stall.
The administration is also preparing to broaden its tariff policy. Trump stated he intends to send letters to more than 150 smaller trade partners, establishing standardized tariff rates across the board. Over 20 countries have already received such notifications.
Treasury Secretary Scott Bessent indicated on Tuesday that more trade deals could be finalized in the coming days.
