Trump determines 15 % tariffs on Japanese imports as part of the Investment Agreement
President Donald Trump said in a Social truth On Tuesday, his administration reached a deal with Japan, one of the largest trading partners in the United States, to reduce the tariff rate to 15 % as part of a comprehensive trade agreement.
This rate is less than 24 % that Trump threatened Japan On April 2 and 25 % said He would have hit Japanese imports in a message on July 7. Before the current term Trump, the actual tariff for the United States on Japanese imports was less than 2 %, according to World Bank data.
The Japanese Foreign Ministry did not immediately respond to a request to comment on the details of the agreement.
This announcement comes a few days before August 1, which is the last deadline that Trump imposed on the countries to conclude a deal to avoid the tariff rates that Trump himself put in dozens of messages he made on social media. Despite the delay in this deadline before, Treasury Secretary Scott Bessin said on Tuesday on Fox Business Network that it was “a very difficult deadline.”
Since the so -called “liberation day” that Trump calls on April 2, the administration has not yet crossed any official commercial deals, instead signing a handful of frameworks that can be converted into full deals later.
Japan was strongly trying to avoid the largest possible global definitions of Trump. The commercial negotiator in Japan visited the United States at least eight times, the last of which was Monday when he held a two -hour meeting with Trade Minister Howard Lottenic.
As part of the agreement, Trump said that Japan “will invest, in my direction, at a value of $ 550 billion in the United States, which will get 90 % of the profits.” It was not clear how investment would work of this kind.
Trump described the advertisement in an event with Republicans in Congress later on Tuesday, saying that the definitions “kicked better than anyone other than me and a few people in the room could happen.”
Trump added that Japan will form a joint venture with the United States related to natural gas texture in Alaska.
Japan was the fifth highest exporter of US imports in 2024, as US consumers and companies bought about 150 billion dollars of goods from the country, according to the data of the Ministry of Commerce.
The talks with Japan came at a difficult time for the government of Japan. The Party of Prime Minister Shigro Ishiba recently lost both volumes of parliament. Ishiba pledged to stay as a leader, partly to treat economic opposite winds.
Trump has recently reduced an agreement’s opportunities with Japan.
“The Japanese are difficult, but in the end you have to understand that we will send a message saying,” This is what you will pay, otherwise you will not have to do business with us. But there is an opportunity, “Trump said on June 16.
In May, Trump agreed to a long acquisition of American steel by Nippon Steel in Japan. As part of this deal, Nippon agreed to create at least 70,000 jobs through a $ 14 billion investment, according to both companies and the White House. The companies later raised this to 100,000 jobs, but they made it clear that these additions included “direct, indirect and induced jobs.”