Daily Tariff Trade War Update on India, Japan, and More
Although stock markets grew increasingly complacent on the August 1, 2025, tariff deadline, the U.S. continued to work out agreements.
On Tuesday, the U.S. President announced a deal with Indonesia. Trump initially sent a letter to its government, threatening a 34% tariff. He told reporters that Indonesia agreed to 19% tariffs on its exports to the U.S. Indonesia will not apply tariffs on U.S. imports. Unfortunately, the announcement on Truth Social did not supply any details on the deal.
Late yesterday, President Trump said in an interview on Real America’s Voice that it is close to a trade deal with India. He suggested that a deal with the EU is possible as well. The White House is currently negotiating with EU trade chief Maros Sefcovic.
On Monday, the U.S. will hold talks with an Indian trade delegation.
U.S. Commerce Secretary Lutnick held discussions with Japan’s (EWJ) trade negotiator, Ryosei Akazawa, over the phone. In a 45-minute call, the government said that "The two sides re-confirmed each other's position on U.S. tariff measures and engaged in deep conversation.”
The U.S. is firm on imposing tariffs on Japanese vehicles. That is not negotiable. That would weaken Toyota’s (TM) sales in the U.S. For the second month, exports fell by 0.5% in June. The value of car and steel shipments fell.
The Japanese Yen Trust (FXY) peaked at $65.88 in April and closed at $62.29.
