Overview

• The Japan agreement replaces a threatened 25% levy with a 15% reciprocal tariff on its exports to the U.S. and secures a $550 billion Japanese investment pledge into American projects.
• Tokyo has committed to open its auto, rice and agricultural markets to U.S. goods under the framework deal.
• Similar pacts with the Philippines and Indonesia set 19% tariffs on their exports in exchange for zero duties on American products.
• All three frameworks await formal text from the Office of the U.S. Trade Representative ahead of the August 1 tariff hike deadline.
• The administration is using high reciprocal duties as leverage to extract market-access and investment commitments from individual trading partners.