The United States and European Union unveiled a significant trade agreement this week, which follows a series of recent trade deals agreed with Asian nations.

Under the EU deal, products entering the US, including autos and parts, will face a 15% tariff. However, existing tariffs on steel, aluminum, and copper will remain high at 50%. In return, the EU has agreed to waive country-specific duty rates on US goods.

This deal follows a number of recent trade agreements the US has made with several Asian nations, aimed at stabilising transpacific trade flows disrupted earlier this year by a tariff standoff with China.

In April, trade volumes dropped during heightened US-China tensions but surged after a 90-day tariff pause was introduced in May.

This week’s trade talks with China have high expectations, with a tariff suspension extension likely if not finalised ahead of the current deadline on August 12th.

Additionally, Japan finalised a deal with the US that reduced import tariffs on automobiles to 15% and included $550 billion in US-bound investments. Indonesia agreed to a 19% tariff on its exports to the US, while Philippine exports will be subject to the same tariff, but American goods will be tariff-free.

Vietnam also secured a deal reducing US import tariffs from 46% to 20%, with a sharp 40% tariff applied to goods routed through Vietnam by other countries.

These agreements signal a positive outlook for global trade despite rising duties.