WASHINGTON — This week, U.S. President Donald Trump revealed several new trade deals as the deadline for negotiations between Canada and the United States approaches for a revamped economic and security agreement.
In a series of social media posts on Wednesday morning, Trump highlighted deals with Japan and the Philippines, asserting that he would only consider reducing tariff rates if other countries opened their markets to American goods.
“Another great power of Tariffs. Without them, it would be impossible to get countries to OPEN UP!!! ALWAYS, ZERO TARIFFS TO AMERICA!!!” he stated.
Despite the excitement around the announcements, concerns are mounting among North American automakers.
Japan is set to face 15 percent tariffs, which is a decrease from the initially proposed 25 percent duties on imports to the United States.
It appears that Japanese vehicles imported into the U.S. will not be subjected to the 25 percent sectoral automobile tariffs but will instead encounter the lower 15 percent rate.
Matt Blunt, president of the American Automotive Policy Council, expressed concern on social media, stating, “any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.”
The council represents major companies including General Motors, Ford, and Stellantis, all of which are struggling under the weight of 50 percent tariffs on steel and aluminum.
North America’s automobile industry operates in a highly integrated manner, complicating the tariffs’ effects.
Vehicles imported into the U.S. that meet the standards of the Canada-U.S.-Mexico Agreement on trade, known as CUSMA, continue to face 25 percent duties on their non-American components.
As a result, the newly established deal with Japan could potentially make it cheaper to import Japanese vehicles than cars manufactured in Canada or Mexico, which use substantial American parts.
General Motors revealed a profit decline of 35 percent in its second quarter, largely attributed to the impacts of Trump’s tariffs, with the company anticipating even larger tolls resulting from tariffs in the third quarter.
In addition to Japan, Trump also announced an agreement with the Philippines that would see the nation subject to levies of 19 percent, a slight decrease from the previously threatened 20 percent.
In exchange, Trump stated that both nations would open their markets to U.S. goods, also claiming that Japan would invest $550 billion in the U.S. “at my direction.”
Further, the White House unveiled additional framework details regarding a deal with Indonesia that was introduced earlier this month, which will impose a 19 percent tariff, reduced from Trump’s earlier proposed rate of 32 percent.
Trump had also previously announced economic frameworks for deals with the United Kingdom and Vietnam.
As the August 1 deadline looms, this series of trade announcements arrives at a critical time for Trump, with escalating pressure on several major trading partners.
Trump has sent letters to multiple countries, including Canada, indicating that if no agreement is reached by the deadline, he would impose high tariffs on imports entering the U.S.
In a letter addressed to Prime Minister Mark Carney, he threatened Canada with imposing 35 percent tariffs, though the White House has assured that these levies would not be applied to imports compliant with the continental trade pact.
On Tuesday, Prime Minister Carney confirmed that Canadian Trade Minister Dominic LeBlanc is currently in Washington, but he downplayed expectations of reaching a deal before Trump’s deadline.
According to Carney, the government would only agree to a deal if it serves the best interests of Canadians.
During the closing of the Council of the Federation gathering in Huntsville, Ontario, Ontario Premier Doug Ford likened Canada’s trading relationship with the United States to that of Japan, noting that Canada imports 400 percent more American products than Japan does.
Ford emphasized that Canada is an “economic powerhouse” and indicated that there is no need for the country to “take a back seat to anyone.”
“We sure the heck don’t have to take a back seat to Donald Trump,” he stated.
Ford underscored the need for Canada to diversify its trade and broaden its global economic connections.
International observers are closely monitoring the developments regarding these trade deals.
Uncertainty remains as to whether finalizing an agreement with the U.S. would shield countries from Trump’s existing import taxes on steel, aluminum, and automobiles, which exist outside of the broader tariff regime.
Additionally, duties on copper are set to be implemented by August 1, raising further questions about potential future impacts.
Trump has initiated numerous trade investigations under Section 232 of the Trade Expansion Act of 1962 targeting other key sectors, which could result in forthcoming tariffs on industries such as semiconductors and lumber.
— With files from The Associated Press
This report by The Canadian Press was first published July 23, 2025.
Kelly Geraldine Malone, The Canadian Press
image source from：halifax
