Source Credit : CNBC
President Donald Trump on Tuesday stateside announced a “massive” deal with Japan that includes “reciprocal” tariffs of 15% on the country’s exports to the U.S., with auto duties reportedly being lowered to that level as well.
In a post on Truth Social, Trump called the agreement “perhaps the largest Deal ever made,” while adding that Japan would invest $550 billion in the United States and the U.S. would “receive 90% of the Profits.”
Trump said that Japan will “open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things.”
The U.S. president added that the deal would create “Hundreds of Thousands of Jobs.”
Japanese Prime Minister Shigeru Ishiba said that auto tariffs on Tokyo will be lowered to 15% — from the current 25% — levied across countries — Reuters reported. Auto exports to the U.S. are a cornerstone of Japan’s economy, making up 28.3% of all shipments in 2024, according to customs data.
“A year ago, that level of tariffs [15%] would be shocking. Today, we breathe a sigh of relief,” Brian Jacobsen, chief economist at Annex Wealth Management, told CNBC.
Japanese auto exports to the U.S. fell 26.7% in June, extending May’s 24.7% plunge. The country’s overall exports to the U.S. — its second largest trading partner — stood at 10.3 trillion yen ($70.34 billion) between January to June, a 0.8% year-on-year drop.
Shortly after Tuesday’s announcement, Japan’s top trade negotiator, Ryosei Akazawa, said ”#Mission Accomplished,” in a post on X, and expressed “heartfelt thanks to everyone involved,” according to a Google translation of his remarks in Japanese.
Trump, in a speech that followed his Truth Social post, said that Japan and the U.S. were also concluding an additional deal involving liquified natural gas, adding that “we have [a] Europe [deal] coming in tomorrow,” without specifying any details.
