The global trade environment is experiencing significant changes, driven by the US president and the changing US trade policies. This article attempts to provide an in-depth analysis of recent tariff updates, trade agreements, and other developments to date.

Changes are being made as I write this and even agreements previously agreed. The South Korea-US agreement for example, was set and agreed weeks ago, yet has just changed again on Thursday (July 31).

1.  Tariff Updates

The United States has implemented various tariff changes, affecting multiple countries and industries. Some key updates include:

- Country-Specific Tariffs: Japan, South Korea, and Malaysia faced 25% tariffs, while other Asian countries are subject to 30-40% tariffs. Now they are all much less (see table below). Vietnam has a 20% tariff on direct shipments and 40% on Chinese-origin goods transshipped through Vietnam.

- New Tariffs: India faces a 25% tariff, effective August 1, while Brazil's tariff rate increases from 10% to 50%, effective August 6. Copper imports are subject to a 50% Section 232 tariff, effective August 1.

- Proposed Tariffs: A 10% tariff is proposed on BRICS countries, and a 200% tariff is proposed on pharmaceuticals.

2.  Trade Agreements

The United States has recently finalized or announced several trade agreements, including:

- U.S.-Japan Deal: A 15% reciprocal tariff, $550 billion Japanese investment in the U.S., and reduced auto tariffs from 25% to 15%.

- U.S.-South Korea update: The agreement made earlier this month of 25% tariffs on imports into the U.S. revised more favorably for South Korea at 15% aligning with other competitive trading partners, Japan, and the EU.

- U.S.-Philippines Deal: A 19% reciprocal tariff.

- U.S.-Indonesia Deal: A 19% reciprocal tariff on Indonesian goods, with no tariffs on U.S. goods entering Indonesia. Indonesia will eliminate digital service taxes, pre-shipment inspections, and export controls on critical minerals.

- U.S.-EU Trade Agreement: The EU will eliminate duties on U.S. exports, while the U.S. will impose a 15% tariff on EU imports. The agreement includes EU purchase commitments and other concessions, with full details not yet made public.