April 29, 2025​

U.S. Commerce Secretary Howard Lutnick revealed that the United States has finalized a trade agreement with an undisclosed country. While specific details remain confidential, Lutnick described the deal as a significant achievement, signaling progress in the administration’s broader trade strategy.​

This announcement coincides with President Donald Trump’s decision to ease the impact of his 25% auto tariffs. The new measures include offering credits to automakers worth up to 15% of the value of domestically assembled vehicles. These credits can be applied against the cost of imported parts, aiming to encourage companies to reshore their supply chains back to the U.S. Additionally, vehicles and auto parts subject to the 25% tariffs will be exempt from other existing duties, including those on Canadian and Mexican goods and most other countries. However, imports from China will continue to face heavy tariffs.​

The administration’s actions are part of a broader effort to boost domestic manufacturing and reduce reliance on foreign supply chains. Despite these initiatives, economic concerns persist. A Reuters/Ipsos poll indicates that only 36% of Americans approve of Trump’s economic management. Economic growth is projected at just 0.3% annualized for Q1 2025, down from 2.4% in Q4 2024, primarily due to pre-tariff import surges. Major companies like General Motors and UPS are adjusting forecasts or cutting jobs, and over 40 firms have retracted guidance due to trade uncertainty.​

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