US President Donald Trump has announced several major trade deals with key partners, including the European Union, Japan, and South Korea. However, upon closer inspection, these agreements appear to be more of a strategic maneuver than actual trade deals.
In each case, America’s trading partners agreed to accept 15% tariffs on their exports to the US while lowering trade barriers on American goods. But the details of the deals are sparse, with none including meaningful reforms to tax or regulatory codes, currency stabilization, or reductions in non-tariff barriers.
The “investments” from Japan and South Korea might not be investments at all but rather loans that would need to be repaid with interest. The European Union’s promised investment of $600 billion is largely based on existing plans by European companies, which can be adjusted or canceled as needed. As a result, the true value of these deals remains unclear.
The main effect of Trump’s tariffs has been the right to impose tariffs, not a reduction in barriers. Tariffs have hurt domestic producers by increasing import costs and contributed to job losses in manufacturing. The manufacturing sector has shed tens of thousands of jobs since Liberation Day, with optimism among firms at its lowest point in years.
The new deals do provide some certainty about tariff rates, but they actively undermine key American industries such as the automotive sector. Foreign cars will face 15% tariffs, while crucial materials like steel and aluminum are already subject to higher rates. This could give foreign competitors a significant cost advantage over American-made vehicles.
As negotiations with other trading partners continue, it’s essential to scrutinize the details of any future agreements to avoid falling for empty promises or strategic maneuvering.
Source: https://www.theatlantic.com/economy/archive/2025/08/trump-trade-deals/683796