President Donald Trump has achieved significant trade agreements, surprising analysts who doubted the efficacy of his tough negotiating style. These deals are projected to bring substantial new investments, amounting to hundreds of billions of dollars, into the United States.
The most notable agreement is with the European Union. This deal establishes a 15% tariff on most EU goods, while the EU commits to purchasing $750 billion worth of U.S. energy and investing an additional $600 billion in American enterprises by 2028.
Trump announced the EU agreement on July 27, 2025, following discussions with European Commission President Ursula von der Leyen at his golf resort in Scotland. He described it as the “biggest deal ever made” during the declaration.
The 15% tariff is significantly higher than the approximately 1% average before Trump’s tenure, yet it remains below the 30% punitive tariffs that were threatened if Europe did not agree by the August 1 deadline.
According to the agreement, Europe will eliminate all tariffs on American industrial goods, thereby opening new markets for U.S. manufacturers. The EU has also agreed to purchase American military equipment and provide U.S. businesses with enhanced access to European consumers.
Von der Leyen remarked to reporters that the negotiations were “indeed very tough” but resulted in a mutually beneficial outcome.
Trump’s European success followed a landmark agreement with Japan. This deal includes a $550 billion investment fund aimed at revitalizing American industries such as energy, computer chips, pharmaceuticals, and shipbuilding.
The Japanese agreement marks the largest foreign investment commitment secured by any nation. Japan will be subject to a 15% tariff on its exports, consistent with the EU rate.
Under the Japan agreement, the U.S. will receive 90% of the profits from the investment fund, while Japan will open its markets to U.S. automobiles, trucks, and agricultural goods. Japan has also pledged to purchase 100 Boeing aircraft and increase rice imports from the United States by 75%.
Trump celebrated the Japan agreement during discussions with Republican lawmakers, stating he had “signed the largest trade deal in history” with the Asian nation.
The president also secured deals with other countries ahead of the August 1 deadline. Indonesia agreed to a 19% tariff while removing most taxes on U.S. products. In return, Indonesia will purchase $15 billion in U.S. energy, $4.5 billion in American agricultural goods, and 50 Boeing aircraft.
The Philippines agreed to similar terms, with a 19% U.S. tariff while eliminating taxes on American exports. Vietnam reached a preliminary agreement, though specific details remain limited. The United Kingdom received favorable terms, including reduced tariffs, in exchange for increased purchases of American agricultural products and energy.
Even China participated by reducing prior tariffs from 145% to 30% for the U.S., and from 125% to 10% for China. This temporary agreement, signed in May, is set to expire on August 12, with ongoing negotiations.
The agreements demonstrate the effectiveness of Trump’s strategy of leveraging high tariffs to secure improved terms. Although many experts predicted negative economic impacts, major economies have accepted considerably higher tariffs to maintain access to U.S. consumers.
Countries missing Trump’s deadline face increased tariffs. Canada will pay a 35% tariff despite ongoing discussions. India faces 25% tariffs and additional penalties for purchasing energy from Russia. Other nations without agreements face tariffs ranging from 25% to 50%.
Stock markets reacted positively to the deals. European markets rose to four-month highs following the EU agreement, while Japan’s main stock index climbed 3.7% after Trump’s announcement.
German Chancellor Friedrich Merz commended the EU deal, noting it prevented “a trade conflict” that could have harmed Germany’s export economy.
However, not all responses were positive. Some European officials criticized the agreements, with French Prime Minister François Bayrou describing the EU deal as a negative day for Europe. Nonetheless, most leaders acknowledged that the agreements were preferable to higher tariffs.
American business groups and agricultural producers welcomed the deals. Industry leaders stated that the agreements provide certainty and expand access to previously challenging markets.
The agreements collectively encompass nearly half of the global economy and introduce new international trade rules. The Trump administration claims the deals will generate hundreds of thousands of American jobs and bring vital industries back to the U.S.
