Since Trump’s inauguration, America’s tariff regime, guided by the America First Trade Policy, has pushed trading partners around the globe to either:
- Offer concessions to address unbalanced trade dynamics, or
- Accept high tariffs for goods and services imported to the US.
Deals were made with the UK, the EU, and Japan, a truce was reached with China, and verbal agreements were made with countries like Vietnam, Indonesia, South Korea, and the Philippines.
However, the deals don’t reflect traditional comprehensive Free Trade Agreements. Instead, they protect US trade partners from sky-high tariffs, facilitate lower duty or duty-free market access for US goods, and act as transactional frameworks by securing targeted, sector-specific investments and strategic purchases of US goods.
So far, the deals we’ve seen are rewriting the dynamics of America’s foreign relationships. Let’s break down what new trade deals have been made, what they stipulate, and what this means for tech trade with the US.
Leverage America’s New Trading Agreements
US exporters may benefit from easier market access to new locations, and US importers may benefit from preferential rates and lower duties. Get in touch, and our experts can guide you through how the new trade deals could enhance your global tech trade strategies.
What is the America First Trade Policy?
Introduced on January 20th, President Trump explained the America First Trade Policy “…promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.”
This involves:
- Addressing unfair and unbalanced trade leading to trade deficits and economic and national security risks,
- Reviewing economic and trade relations with China for “unreasonable or discriminatory” practices and imposing trade barriers where necessary,
- Addressing imports that threaten the United States’ industrial and manufacturing base or national security, and
- Implementing export controls where necessary to protect America’s “technological edge” and eliminate loopholes “…that enable the transfer of strategic goods, software, services, and technology … to strategic rivals and their proxies.”
Unpacking America’s New Trade Agreements
The United States of America-United Kingdom Economic Prosperity Deal
The US-UK EPD was announced on May 8th, 2025. The White House statement explains, “… the purpose of this arrangement is to deepen our trade relationship based on mutual trust and a shared commitment to fair and reciprocal trade.”
Most UK imports to the US face a 10% reciprocal rate. This rate acts as an “all-inclusive” cap for import tariffs and incorporates any existing Most-Favored Nation (MFN) rates. The UK is also increasing market access for a vast range of US exports.
Other key provisions include:
- Both countries are to apply tariff reductions on a preferential basis,
- 25% tariffs on UK steel and aluminum remain, while the rest of the world faces 50%, with the possibility of a tariff-rate quota to lower the rates at some point if the UK meets US supply chain security requirements,
- A similar approach towards pharmaceuticals as steel and aluminum, where rates may be lower for the UK than other trading partners once the Section 232 investigation into this sector is complete,
- A reduced 10% rate for UK autos up to a cap of 100,000 imports, and
- The elimination or reduction of UK non-tariff trade barriers for specific goods and services.
The United States-European Union Framework on an Agreement on Reciprocal, Fair, and Balanced Trade
The EU-US framework was announced on July 28th, 2025, aiming to stabilize transatlantic trade. A joint statement elaborating on the strategic arrangement was released on August 21st.
The White House statement emphasised, “This Framework Agreement represents a concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment.”
EU imports now either face only the Most-Favored Nation (MFN) rate or a 15% reciprocal rate. Once the EU enacts the agreed tariff reductions, the US will introduce a 15% tariff cap on EU pharmaceuticals, semiconductors, and lumber, plus additional tariff reductions on autos and auto parts. Goods like aircraft and generic pharmaceuticals face only an MFN rate. The EU is charging American firms zero tariffs on certain products.
Other key terms include:
- The elimination of EU tariffs on US industrial goods,
- The negotiation of rules of origin that enhance the framework benefits for both nations,
- European investment in strategic American sectors of $600 billion,
- EU procurement of US military and defense equipment,
- A mutual commitment to reduce and eliminate non-tariff trade barriers,
- Discussions on commitments to IP protection,
- The strengthening of economic security alignment for enhanced supply chain resilience and innovation.
The United States-Japan Agreement
Announced on July 22nd, the US-Japan agreement was only implemented on September 4th, 2025. While the US has released an Executive Order and Factsheet on the agreement, the Japanese government has not released a statement.
The US-Japan agreement implements a baseline rate of 15% for most Japanese imports, with sector-specific treatment for a range of products.
Other terms of the agreement include:
- Japanese goods with existing HTSUS rates below 15% will face additional ad valorem rates to the sum of 15%, while products already facing tariffs over 15% will not face additional duties,
- Japan is to grant various American products market access across sectors like aerospace, energy, and industrial goods, and
- US rates on Japanese autos decrease to 15%, and Japan is to lift regulatory restrictions on US autos.
The United States-Mexico-Canada Free Trade Agreement
In a joint news conference with Mexico’s President Claudia Sheinbaum and Canada’s Mark Carney, Carney stated, “North America is the economic envy of the world,” explaining that, “Part of the reason for that is the cooperation between Canada and Mexico, both of us and the United States … We are all stronger together.”
The USMCA is crucial for North American cross-border supply chains and technological innovations. It facilitates seamless digital trade by simplifying cross-border data flow and enforcing protections for data-driven businesses. Additionally, the Wilson Center argues that there’s a significant opportunity for an integrated microprocessor supply chain to be developed across the USMCA region.
The USMCA has been under pressure since the beginning of the new tariff agenda. From March 3rd, Canada and Mexico faced 25% tariffs on most imports. From March 6th, USMCA-compliant goods were exempt from these rates.
Canada retaliated with tariffs, but its vast exemptions for US goods resulted in a negligible increase in tariff rates on American products. Mexico focused on domestic production and other trade relationships. Canada also pursued diversified economic partnerships.
Canada conceded to President Trump’s concerns over its incoming Digital Services Taxes by cancelling their implementation in June. By July 1st, however, the US increased tariffs on non-USMCA-compliant imports from Canada to 35%. The increased rate for Mexico was delayed until October, allowing time for further negotiations.
Canada also implemented a 25% duty on global steel and aluminum imports on July 16th, from which the US was initially exempt. By August 22nd, it removed import duties on various consumer goods and USMCA imports from the US, but steel and aluminum were not exempt.
The turbulent USMCA dynamics leave the agreement’s future unsteady. A formal review is set for July 2026, during which the three nations will likely continue negotiating trade disputes and other key concerns from the America First Trade Policy, such as illegal immigration, drug trafficking, and national security.
A range of goods utilizes cross-border supply chains through these countries for production, meaning the loss of this agreement would endanger North American manufacturing with tariff and regulatory trade barriers, higher costs, less competitiveness, and vulnerability to foreign economic threats.
The Center for Strategic & International Studies argues, “While the review may become a platform for the United States to secure short-term wins, it also presents a rare opportunity to modernize the agreement and strengthen North America’s shared competitiveness.”
The US-China Tariff Truce
In May 2025, the US and China agreed on a 90-day tariff truce to defuse escalating trade tensions. The US reduced its tariffs on Chinese imports to 30%, while China imposed 10% tariffs on US imports.
The truce was extended for 90 days in August. Negotiations are ongoing, with a key deadline for November 10, 2025, which could produce more permanent or expanded terms.
A phone call between President Trump and President Xi on September 19 reportedly included an approved TikTok deal, discussions on trade and fentanyl, and an agreement to meet at South Korea’s APC Summit. However, China has also recently avoided purchasing US exports, like soybeans. Semiconductors, rare earth elements, and China’s antimonopoly investigations into American firms are still a source of tension.
It remains to be seen how and when the US and China can overcome contrasting interests and reach a balanced bilateral agreement.
New US Trade Deals and the Future of Multilateral Trade
Comprehensive trading agreements typically take years to finalize. The new trade agreements that have emerged under the Trump administration are mostly partially implemented and subject to change.
We’ve yet to hear more details on US agreements with countries like Vietnam, the Philippines, and South Korea. Additionally, while a US-China trade agreement has been much-anticipated, we’ll likely see the renegotiated terms for the USMCA before then.
This means that businesses will need to:
- Maintain records of imports to the US, especially as trade benefits may be implemented retroactively,
- Stay on top of US Customs and Border Protection guidance for tariff implementation and for refund procedures, as excessive duties may need to be refunded,
- Follow sector-specific terms for items from steel and aluminum to semiconductors and pharmaceuticals, and
- Partner with a trade compliance expert to ensure your imports to the US comply with new regulations and leverage new and evolving trade agreements.
