US President Donald Trump on Tuesday announced that he had made the “largest deal ever” with Japan, which involves “reciprocal” tariffs of 15 per cent on the country’s exports to the US.
In a post on Truth Social, Mr Trump also said that Japan will invest $US550 billion ($839 billion) into the United States, adding that the US will receive 90 per cent of the profits.
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Mr Trump wrote.
“Japan will invest, at my direction, $550 Billion Dollars into the United States, which 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%.”
Mr Trump said “this is a very exciting time for the United States, highlighting the “great relationship” with Japan.
“A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief,” said Brian Jacobsen, chief economist at Annex Wealth Management.
In his tariff letter sent out to Japan earlier this month, Mr Trump had threatened a 25 per cent tariff on its exports to the US from August 1, one percentage point higher than the 24 per cent rate announced during his April 2 “Liberation Day” tariffs.
Japanese automobiles imported into the US already attract a 25 per cent tariff in line with the rest of the countries.
Auto exports to the US are a cornerstone of Japan’s economy, making up 28.3 per cent of all shipments in 2024, according to customs data.
https://thewest.com.au/business/trade/donald-trump-announces-us-japan-839-billion-trade-deal-calls-it-largest-ever-as-tariffs-confirmed–c-19444673
