On April 29, 2025, U.S. Commerce Secretary Howard Lutnick announced that the United States has finalized a trade agreement with an undisclosed foreign country. While the specific nation remains unnamed pending its internal approval processes, Lutnick indicated that the deal could lead to a reduction in planned reciprocal tariffs. This development coincides with President Donald Trump’s executive order aimed at alleviating the impact of his administration’s 25% tariffs on imported vehicles and parts. The order provides automakers with credits worth up to 15% of the value of domestically assembled vehicles, which can be applied to the value of imported components. This measure is designed to ease the financial strain on automakers and allow time for reshoring supply chains. ​

The announcement of the trade deal and the tariff relief measures contributed to a rise in stock markets, with the S&P 500 closing higher for the sixth consecutive day. However, businesses have expressed growing concern over the economic impact of Trump’s trade policies. Major companies like UPS and General Motors report significant disruptions, with UPS announcing job cuts and GM postponing its earnings call. Economic forecasts project a slowdown, with Q1 growth expected at just 0.3%, largely due to tariff-induced import surges. ​

While the specific country involved in the trade agreement has not been disclosed, ongoing negotiations with nations such as Singapore and Ukraine have been reported. Singapore is seeking U.S. concessions on pharmaceuticals and access to high-end AI chips, while Ukraine is negotiating terms related to its mineral resources. ​

The administration aims to negotiate 90 trade deals during a 90-day tariff pause to stabilize the economy. The unnamed trade agreement announced by Lutnick is the first in this series, with further details expected to emerge as negotiations progress.

Source: Reuters