After Japan, the Philippines and the European Union, South Korea concluded a trade agreement with Washington on Wednesday July 30. Its products exported to the United States will be taxed up to 15%.
The list is getting longer. After Japan and the Philippines on Tuesday and the European Union on Sunday, it is the South Korea’s turn to conclude a trade agreement with US President Donald Trump. Wednesday, July 30, Seoul and Washington agreed on customs duties up to 15% on Korean products exported to the United States.
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.
15% for South Korea
If an agreement was well concluded on Wednesday between the United States and South Korea, it is because, like the European Union and other countries, Seoul agreed to bend to counterparts in favor of Washington.
Seoul has indeed 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.
15% for the European Union
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 on August 1. In return, 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.
15% also for Japan
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 in particular obtained total customs duties of 15% for its crucial automotive sector, which represented almost 30% of exports last year to the United States.
The 50% surcharge on Japanese steel and aluminum exports continue to apply.
The agreement has Japanese investment for “$ 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 …), 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 of American cars to the Japanese market.
19% for the Philippines and Indonesia
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.
Customs duties also amounted to 19% for Indonesia, according to the framework agreement in mid-July. It is 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.
20% for Vietnam
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.
50% for Brazil
Brazil is expected to increase 50% surcharge in retaliation for legal proceedings engaged against his ex-president Jair Bolsonaro, accused of an attempted coup after his defeat in the 2022 presidential election, a “witch hunt” according to his ally Donald Trump.
The tenant of the White House signed a decree in this sense on Wednesday, effective from August 6.
According to the decree, the surcharge is justified by “the unusual and extraordinary threat that constitutes Brazil for national security, the economy and foreign policy of the United States”.
Exceptions will nevertheless be made for planes, orange juice and pulp, Brazil nuts, and certain iron, steel or aluminum products. Washington accuses the judge of the Supreme Court Alexander of Moraes of “arbitrary detentions” and of non-compliance with “freedom of expression”.
The Treasury believes that the judge took advantage of his position to “target political opponents, including ex-president Jair Bolsonaro, journalists, American social networks and other American and international companies”.
10% on average for the United Kingdom
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 American ethanol or beef market, arousing concerns in the country. The rest of the British manufactured products is still subject to 10%floor rights.
