WSJ Opinion: Potomac Watch Trump's Tariff Deals With Japan and the EU, as His Aug. 1 Deadline Nears
Jul 29, 2025
Guests Alicia Finley and Kim Strassel, both accomplished columnists at The Wall Street Journal, dive into the recently unveiled trade agreements between Donald Trump, Japan, and the EU. They discuss the implications of a 15% baseline tariff and the ambiguous promises of billions in U.S. investment. The conversation highlights concerns from the United Auto Workers about potential disadvantages for U.S. carmakers, exploring how protectionist policies can backfire on both workers and industries. They also speculate on the pressing August 1 deadline for further tariff discussions.
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Key Feature: 15% Baseline Tariffs
- The main feature of the trade deals is a 15% baseline tariff on imports from the EU and Japan, raised from under 10%.
- Details on promised investments are unclear and non-tariff barriers remain largely unaddressed, limiting real benefit to the U.S.
High-Level Deals Risk Empty Promises
- Trump is negotiating at a high level, delaying detailed agreements to later, which risks unfulfilled promises.
- Past deals, like with China, show large promises may not be realized.
Trade Barriers Remain Unchanged
- Real trade barriers like EU digital taxes and food safety rules remain unaddressed, as member countries control those regulations.
- Trade deals often start as frameworks before real progress; these new deals are mostly broad promises without substantive change.