U.S. strikes new trade deals ahead of August 1 deadline

Amid a global sense of uncertainty, President Donald Trump announced the reaching of trade deals with Japan, the Philippines, and Indonesia. The news comes only a week before the August 1 deadline imposed by the U.S. government. 

According to the White House press release, imports from Indonesia and the Philippines will now be subject to a 19% tariff rate, while Japanese products will pay a 15% duty.

Many vital U.S. industries are holding their breath in the face of the president's trade deals. When diving into agriculture and produce, this latest round alone touches on more than a billion dollars’ worth of growing horticultural trade relationships.

Valuable trade partners

Japan is a major U.S. export market. According to the Foreign Agricultural Service, the value of horticultural trade between the countries has increased, with an 8% rise in exports and a 4% boost in imports between January and May 2024, compared to the same period this year. In 2025, Japanese horticultural exports are at $964 million, while imports reached $211 million.

On the other hand, the produce trade relationship value between the Philippines and the United States has improved, mainly thanks to a $25 million increase in U.S. imports. Indonesian horticultural exports have remained unchanged, but imports also increased slightly: from $98 million to $117 million.

So far, we know that Indonesia and the Philippines are opening their doors wide open to all U.S. products. Meanwhile, Japan will invest $550 billion in the United States. In a statement on social media, President Trump said 90% of the profit from that investment will remain in the U.S. 

Japanese Prime Minister Shigeri Ishiba corroborated the President's statement and added that the agreement will benefit both countries. 

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