Japan and the Philippines bring to five the trade agreements announced with Washington before the entry into force scheduled for August 1 of customs surcharge for products imported into the United States.
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The customs duties provided for by these agreements are often significantly higher than the 10% floor level already applied since April by the United States for products from most countries. Barclays analysts evoke in a note “a tendency of customs rights gravitating around 15%-20%”.
The 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. “The extent of the concessions granted by the Japanese government can raise fears of very complicated negotiations with other areas, such as the European Union,” said in a CPR Asset Management note.
Japan: 15%
According to the “enormous” agreement announced Tuesday by US President Donald Trump, Japanese products imported into the United States will be taxed at 15%, well below the 25% surcharge which the archipelago was threatened.
Tokyo obtained total customs duties of 15% for its crucial automotive sector, which represented almost 30% of Japan exports last year to the United States and which is currently subject to a surcharge of 25%.
“Before Trump’s arrival, the rights were around a few percent,” puts Stefan Angrick, Moody’s Analytics economist. “At 15%, we are much above expectations.”
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 for $ 8 billion from American products (corn, soy, fertilizer, bioethanol, fuel …), adds this document without delivering calendar. And the two countries “study a new Alaska liquefied natural gas purchase agreement (LNG),” he said.
Tokyo is committed to buying American planes, “especially 100 Boeing”, to muscle its purchases from the American defense industry, and “to raise long -standing restrictions” which, according to Washington, will hinder American automobiles access to the Japanese market, indicates this memo.
The White House also ensures that the archipelago “will immediately increase its imports of American rice by 75%”.
The subject is sensitive to Tokyo. “Nothing imposes sacrifices on our farmers,” Japanese Prime Minister Shigeru Ishiba said on Wednesday.
While Japan currently imports up to 770,000 tonnes of rice exempt from customs duties (from all countries combined), this ceiling will be maintained, but the archipelago will import more American cereals at the expense of other origins, he explained.
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 for the aerospace sector, for example the British flagship drives Rolls Royce.
London is still negotiating exemptions for rights 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 imports of British manufacturing products remain subject to 10%floor duties.
Vietnam: 20%
Vietnam agreed in early July with the United States, its main export market for textiles and shoes, on a surcharge of 20%, and not 46% as initially scheduled by the Trump administration.
However, the agreement provides for double the rate at 40% for products designed elsewhere which only transit through Vietnam, by so -called transhipment methods.
The agreement also provides for a zero taxation for American products exported to Vietnam.
Indonesia: 19%
The agreement signed last week with Indonesia provides 19% customs duties on Indonesian products, far from the threat of 32% for a time mentioned.
According to Washington, Jakarta accepted in exchange for providing almost all of American customs duties and recognizing American standards for a number of them, such as the automobile or pharmaceutical products.
Indonesia should also retreat on the implementation of a taxation of the digital economy, so far planned and has committed to lifting existing restrictions on exports of critical minerals.
The archipelago had already taken a first step towards Washington on July 8, by committing to import more American agricultural and oil products.
