UK,Philippines now Japan (EU shortly).
Trump announces ‘massive’ trade agreement with Japan
CNN —
President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between allies and major trading partners that appeared elusive just weeks ago.
“I just signed the largest trade deal in history; I think maybe the largest deal in history with Japan,” Trump said during a reception with Republican members of Congress Tuesday night.
“They had their top people here, and we worked on it long and hard. And it’s a great deal for everybody.”
The deal will see US importers pay 15% “reciprocal” tariffs on Japanese goods exported to the United States. But importantly for Japan, the 15% rate will also extend to automobiles and car parts - putting it at an advantage over other major vehicle exporters, which have faced a 25% levy on automotive sector exports since April.
Japan will also invest $550 billion dollars into the United States, Trump said, adding that the US “will receive 90% of the profits.”
“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” Trump had posted earlier on Truth Social.
The news saw Japanese markets hit a one-year high on Wednesday, with a surge in the price of automaker shares pushing the Nikkei 3.7% higher.
“Mission accomplished,” proclaimed Japan’s tariff negotiation Ryosei Akazawa in a post on X, accompanied with a photo of himself in the White House pointing to an image of Trump and Japan’s Prime Minister Shigeru Ishiba in prior talks.
Japan is “the first in the world to be able to reduce tariffs on automobiles and auto parts without volume restrictions,” Akazawa told reporters in Washington DC Tuesday night.
In Tokyo, Ishiba hailed the deal as “the lowest figure to date for a country that has a trade surplus with the United States,” adding that the government will examine the details of the deal “carefully.”
“We believe that this will contribute to the creation of jobs, the production of good products, and the fulfillment of various roles in the world through the mutual cooperation of Japan and the US,” he told reporters at his office on Wednesday.
Akazawa explained that the Japanese injection of $550 billion into the US would be in the form of equity and loan to support Japanese businesses’ investments in key fields such as pharmaceuticals and semiconductors.
The share of American rice imports may increase under the current agricultural trade framework, Akazawa said, while stressing that the agreement would “not sacrifice Japanese agriculture.”
Japan will also continue discussions with the US on other tariff measures not covered in Tuesday’s deal, including steel and aluminum, which remain subject to a 50% levy, Akazawa said.
The Japan agreement was the third piece of trade-related news Trump announced on Tuesday. This comes after months of negotiations with key trading partners like the European Union, South Korea, India and dozens of others at a standstill as Trump’s latest August 1 deadline for higher tariffs looms.
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Trump announces ‘massive’ trade agreement with Japan
CNN —
President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between allies and major trading partners that appeared elusive just weeks ago.
“I just signed the largest trade deal in history; I think maybe the largest deal in history with Japan,” Trump said during a reception with Republican members of Congress Tuesday night.
“They had their top people here, and we worked on it long and hard. And it’s a great deal for everybody.”
The deal will see US importers pay 15% “reciprocal” tariffs on Japanese goods exported to the United States. But importantly for Japan, the 15% rate will also extend to automobiles and car parts - putting it at an advantage over other major vehicle exporters, which have faced a 25% levy on automotive sector exports since April.
Japan will also invest $550 billion dollars into the United States, Trump said, adding that the US “will receive 90% of the profits.”
“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” Trump had posted earlier on Truth Social.
The news saw Japanese markets hit a one-year high on Wednesday, with a surge in the price of automaker shares pushing the Nikkei 3.7% higher.
“Mission accomplished,” proclaimed Japan’s tariff negotiation Ryosei Akazawa in a post on X, accompanied with a photo of himself in the White House pointing to an image of Trump and Japan’s Prime Minister Shigeru Ishiba in prior talks.
Japan is “the first in the world to be able to reduce tariffs on automobiles and auto parts without volume restrictions,” Akazawa told reporters in Washington DC Tuesday night.
In Tokyo, Ishiba hailed the deal as “the lowest figure to date for a country that has a trade surplus with the United States,” adding that the government will examine the details of the deal “carefully.”
“We believe that this will contribute to the creation of jobs, the production of good products, and the fulfillment of various roles in the world through the mutual cooperation of Japan and the US,” he told reporters at his office on Wednesday.
Akazawa explained that the Japanese injection of $550 billion into the US would be in the form of equity and loan to support Japanese businesses’ investments in key fields such as pharmaceuticals and semiconductors.
The share of American rice imports may increase under the current agricultural trade framework, Akazawa said, while stressing that the agreement would “not sacrifice Japanese agriculture.”
Japan will also continue discussions with the US on other tariff measures not covered in Tuesday’s deal, including steel and aluminum, which remain subject to a 50% levy, Akazawa said.
The Japan agreement was the third piece of trade-related news Trump announced on Tuesday. This comes after months of negotiations with key trading partners like the European Union, South Korea, India and dozens of others at a standstill as Trump’s latest August 1 deadline for higher tariffs looms.
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