Redefining U.S. Trade Policy
Since early 2025, sweeping tariff threats sparked a global rush to negotiate new trade arrangements with the United States. Instead of implementing high tariffs, baseline rates were lowered as deals advanced at varying speeds and scope.
Moreover, parts of trade relations evolved through exemptions covering aircraft parts, medicines, agricultural products, and specific resources unavailable in the U.S. market. These arrangements often take the form of frameworks rather than finalized trade accords, leaving room for modification or termination.
Unlike historic trade agreements, the new U.S. approach generally excludes Congressional approval and prioritizes executive-led flexibility. Across these frameworks, economic security plays a central, if loosely defined, role, including investment screening and supply chain resilience.
United Kingdom: First Framework Deal
The U.S. – UK Economic Prosperity Deal, concluded May 8, 2025, introduced the first reciprocal trade framework. It aimed to expand high-quality trade by reducing barriers, increasing investment, and deepening economic cooperation.
Additionally, it kept a 10% tariff baseline and created a quota for UK beef imports at that rate. The pact adjusted sector-specific tariffs, such as for vehicles, and allowed future negotiation on aluminium and pharmaceuticals.
Both parties committed to address non-tariff barriers like safety regulations and standards cooperation. Despite these provisions, the deal is not legally binding and can be terminated with written notice.
Asia Frameworks: Indonesia, Japan and Vietnam
In July 2025, a U.S. – Indonesia trade framework reduced Indonesia’s tariff baseline from 32% to 19%. However, the U.S. made no additional sector tariff concessions and focused on Indonesian commitments to adjust non-tariff barriers.
Meanwhile, the U.S.-Japan agreement also announced in July lowered tariffs to 15% and included investment commitments. Japan agreed to expand market access for cars, energy, rice, and other goods while also addressing economic security concerns.
Likewise, Vietnam’s framework reduced its tariff baseline to 20% and addressed non-teriff barriers and digital trade cooperation.
European Union Framework
The U.S.-EU framework, finalized in August 2025, set reciprocal tariff rates at 15% and offered certain exemptions for specific products. This agreement emphasized cooperation on standards, digital trade barriers, and economic security mechanisms.
Additionally, the EU pledged investments in strategic sectors and energy, supporting broader economic linkages.
Treaties with Other Partners
Framework deals with Cambodia and Malaysia cut tariff baselines to roughly 19%. Both agreements mirrored traditional trade principles more closely than others but remained asymmetric in commitments.
Similarly, Thailand’s framework included 19% tariffs, digital trade provisions, and labor and environmental commitments. South Korea’s agreement included a 15% tariff baseline alongside broad economic security and industrial investment commitments.
Argentina’s framework upheld a 10% tariff baseline and provided market access across agriculture, medicines, and vehicles. Ecuador’s and Guatemala’s deals emphasized tariff exemptions on selected products with fewer sector adjustments.
Deals with Switzerland and Liechtenstein lowered tariffs and included significant economic security, digital trade, and investment commitments.
South Asia and Bangladesh Engagement
The U.S. – Taiwan trade and investment arrangement, announced in January 2926, focused on semiconductors and strategic supply chains. The U.S. – India framework lowered tariff baselines and included commitments on non-tariff barriers and digital trade cooperation.
Most recently, a U.S. – Bangladesh agreement reduced tariffs to 19% while promising preferential access for a range of products. Bangladesh also agreed to long-term purchases of energy and agricultural goods, strengthening bilateral commercial ties.
Overall Trends and Implications
Across these varied deals, a common trend emerged; tariffication remains flexible rather than fixed. Many frameworks include economic security clauses involving supply chains, export controls, and investment screening.
Moreover, non-tariff barriers, digital trade standards, and regulatory cooperation often feature prominently in negotiations. Most agreements lack traditional legal bindingness, signaling a new era of conditional and modifiable trade arrangements.
Source:
Manak, I., & Smith, A. J. (2026, February 11). Tracking Trump’s trade deals. Council on Foreign Relations. https://www.cfr.org/articles/tracking-trumps-trade-deals