Deal Done: How New U.S. Trade Agreements Benefit the Average Citizen
The strategy has been clear: use negotiation to open foreign markets to American products while protecting key sectors of the U.S. economy. Let's look at how some of the most recent agreements translate into practical advantages for Americans.
Cristian Ianowich
7/25/20252 min read
In the dynamic landscape of global trade, a good negotiation can make all the difference. Recently, the United States has been focused on securing trade deals that, according to the administration, are designed to directly benefit the American people—whether through job creation, lower prices, or the strengthening of domestic industry.
The strategy has been clear: use negotiation to open foreign markets to American products while protecting key sectors of the U.S. economy. Let's look at how some of the most recent agreements translate into practical advantages for Americans.
Japan: A Strategic Deal for Jobs and Industry
One of the most significant pacts was signed with Japan. This agreement is an excellent example of the new trade approach.
What was agreed? Tariffs on Japanese products, especially in the crucial automotive sector, were set at 15%, a considerable reduction from previous levels. In return, Japan committed to a massive $550 billion investment in the American economy.
Benefits for Americans:
Job Creation: An investment of this magnitude has the potential to create hundreds of thousands of jobs across various sectors in the United States, from manufacturing to technology.
Relief for the Auto Sector: While 15% is still a tariff, it offers predictability and is lower than what was previously threatened. This helps stabilize the supply chain for American automakers that use Japanese parts and can ease pressure on the final price of cars for consumers.
Indonesia and the Philippines: Opening Doors for American Products
The agreements with Southeast Asian nations like Indonesia and the Philippines followed a different pattern, focused on completely opening these markets to U.S. goods.
What was agreed? Both countries agreed to zero out tariffs for the vast majority of American products. In exchange, the U.S. established a 19% tariff on goods it imports from these nations.
Benefits for Americans:
Advantage for Farmers and Industries: With tax-free access, farmers producing soy and wheat, as well as manufacturers in various sectors, gain an enormous competitive advantage to sell their products to a population of hundreds of millions.
Export Boost: These deals create billions of dollars in new export opportunities, which strengthens the American economy and supports jobs tied to these sectors.
The United Kingdom: Strengthening a Historic Alliance
The first deal closed in this new wave of negotiations was with one of the oldest U.S. allies, the United Kingdom, with a focus on high-tech sectors.
What was agreed? Reduced American tariffs for the UK's aerospace and automotive sectors, allowing up to 100,000 British cars to enter the U.S. with a reduced tariff.
Benefits for Americans:
Access to Quality Products: American consumers gain more access to high-quality British cars and aerospace products at potentially more competitive prices.
Industry Stability: For the American aerospace industry, like Boeing, an agreement with such an important partner helps ensure stability in production chains and technological cooperation.
In summary, the current U.S. trade strategy is focused on securing deals that bring tangible results: whether through direct investments that create jobs, the opening of new markets for American products, or the creation of a more predictable trade environment. For the average citizen, the goal is for these negotiations to translate into more job opportunities and greater purchasing power.