Trade agreements concluded with the United States

After Japan and the Philippines on Tuesday and the European Union on Sunday, South Korea concluded a trade agreement with Washington on Wednesday, and its products exported to the United States will be taxed up to 15 %.

Planned taxes are often higher than the 10 % floor level applied since April by the United States to most products. And these agreements, whose details often remain to be negotiated, have also been obtained at the price of major concessions on the part of the countries targeted.

South Korea: 15 %

The agreement announced on Wednesday provides 15 % customs duties on Korean products, Donald Trump specifying that Seoul is committed to investing $ 350 billion in the United States, with in particular the purchase “per 100 billion dollars” of liquefied natural gas (LNG) “or other energy sources”.

South Korea thus escapes the initial threat of 25 % of surcharge.

European Union: 15 %

With the agreement announced on Sunday evening, European products will be taxed at 15 %, instead of the 30 % brandished by Donald Trump if no agreement had been found at 1^is august.

The EU has engaged at $ 750 billion in energy purchases and 600 billion additional investments in the United States.

The United States and the EU will also remove its customs duties for certain “strategic products” including aeronautical equipment, “certain chemicals”, as well as “certain agricultural products and critical raw materials”, according to the European Commission, without detailing more.

Europeans hoped in particular to be able to tear a more favorable treatment for wines and spirits. Donald Trump in any case indicated on Sunday that the pharmaceutical sector would not benefit from special treatment.

Japan: 15 %

According to the agreement announced on Tuesday by Donald Trump, Japanese products imported into the United States will be surcharged at 15 %, below the 25 % of which the archipelago was threatened.

Tokyo has in particular obtained total customs duties of 15 % for its crucial automotive sector, which represented almost 30 % of exports to the United States last year.

The 50 % surcharge on Japanese steel and aluminum exports continue to apply.

The agreement has Japanese investment as a counterpart to “$ 550 billion” on American soil, and “90 % of the profits generated will remain in the United States”, according to a memo released by the White House.

Japan will also buy $ 8 billion in American products (corn, soy, fertilizer, bioethanol, etc.), adds this document. Tokyo is committed to buying American planes, “especially 100 Boeing”, to muscle its purchases from the American defense industry, and to “raise restrictions” which, according to Washington, are the access to American automobiles to the Japanese market.

Philippines : 19 %

According to the agreement also announced on Tuesday, the Philippines obtained a small reduction in customs duties which will apply on their products at the entrance to the United States.

They were set at 19 %, against 20 % announced in early July.

United Kingdom: 10 % on average

In May, London and Washington had concluded an agreement providing for the reduction of 27.5 % to 10 % of customs duties on cars (up to 100,000 vehicles per year) as well as an exemption from rights to the aerospace sector.

London is still negotiating exemptions for steel and aluminum, provided for in the agreement announced in May, against 25 % currently.

In return, the United Kingdom has agreed to further open its market to American ethanol or beef, arousing concerns in the country.

The rest of the British manufactured products imports are still subject to floors of 10 %.

Vietnam : 20 %

Vietnam agreed in early July with the United States, its main export market for in particular textiles and shoes, on a surcharge of 20 %, and not 46 % as initially programmed.

The agreement, however, provides for doubling the rate at 40 % for products designed elsewhere and which only transit through Vietnam by so -called transhipment methods. But no details were given on what would define such products.

The agreement provides for a zero taxation for American products exported to Vietnam.

Indonesia: 19 %

The framework agreement in mid-July provides customs duties of 19 % on Indonesian products, far from the threat of 32 % a brandy time.

According to Washington, Jakarta has agreed to provide almost all of American customs duties and recognize American standards for vehicles or pharmaceutical products.

Indonesia should also go back on the planned taxation of the digital economy and has committed to lifting restrictions on the exports of critical minerals.