Tax insight

Trump announces new trade agreements with key trading partners

Insight
7 minute read
July 30, 2025

What happened?

On July 27, the United States and the European Union (EU) announced a framework trade agreement and released a Fact Sheet on July 28 that calls for the reduction of proposed tariff levels and includes new bilateral investment and procurement commitments.

The White House on July 22 released a Fact Sheet outlining the terms of the US–Indonesia reciprocal trade agreement, previously addressed in PwC’s July 18 Tax Insight. The fact sheet highlights key tariff, regulatory, and market access provisions across manufacturing, agriculture, digital trade, and labor. Note: As of the date of this Tax Insight, Indonesia has not released a fact sheet or other details concerning this trade agreement.

On the same day, the Trump administration announced a trade and investment agreement with Japan and released a Fact Sheet on July 23. The United States and the Philippines also reached a preliminary trade agreement on July 22. As of the date of this Tax Insight, a White House Fact Sheet has not been released.

Why is it relevant?

The framework trade agreements between the United States and the EU, Indonesia, Japan, and the Philippines, provide greater clarity for businesses operating in these countries, while signaling broader trade policy shifts that are likely to affect operational supply chains and sourcing decisions in many industries. The administration is not solely focused on tariff rate changes to level the playing field, but also the elimination of non-tariff barriers to open commercially meaningful market access for US companies, as well as securing certain commitments for foreign direct investment. These agreements are changing a broad breadth of trade-related issues across industries.

Actions to consider

Impacted companies should assess how revised tariff rates, expanded market access, and regulatory changes may impact supply chains and cross-border pricing, and any compliance obligations. The wide nature of changes in these agreements is likely to prompt the need for more in-depth analysis and modeling to fully inform C-suite decision-making. Companies may begin to evaluate trends with respect to tariff rates and market access concessions for specific industries that could be repeated in future US trade deals.

For more details, read the full Tax Insight linked below.