Tariff
Trump announces deal with Japan – customs set lowered
US President Trump had sent a number of letters to trading partners in which he threatened with higher tariffs – also to Japan. Now he makes a new deal known.
US President Donald Trump has announced the conclusion of a trade agreement with Japan. Trump said that they had agreed on mutual tariffs of 15 percent on his online platform Truth Social. Before that, he had requested tariffs of 25 percent. “This is the lowest customs set among the countries that have trade surpluses with the United States,” said Japan’s head of government Shigeru Ishiba in Tokyo. The Nikkei index of the Tokyo stock exchange increased significantly by 1,396.40 points or 3.51 percent to the final score of 41,171.32 points.
“We have just concluded a huge agreement with Japan, perhaps the largest agreement that has ever been concluded,” wrote Trump. There has never been anything like that. Japan will invest $ 550 billion (around 470 billion euros) in the United States on his “instruction”, the US President said. 90 percent of the profit remained in the United States, where hundreds of thousands of jobs would be created.
“Protect what needs to be protected”
Japan will open up to the trade, wrote Trump and listed cars, trucks, rice and other products. The additional tariffs of 25 percent on cars introduced in April were one of the most difficult points in the negotiations of the two trading partners. Trump had claimed that Japan did not import enough US cars if you compare it with the number of Japanese vehicles that come to his country.
The Japanese economic newspaper “Nikkei” quoted a Japanese government representative that the sector -specific tariffs would be reduced to cars and auto parts to 12.5 percent. Together with the original US car tariffs of 2.5 percent, imported cars would be loaded with 15 percent.
Japan’s chief negotiator Ryosei Akazawa had concentrated on the lowering of the auto tariffs, as this is Japan’s largest export sector in retail with the USA. According to Ishiba, the agreement does not provide any quotas for Japanese cars that are imported into the USA. “We have led negotiations to protect what needs to be protected and to achieve an agreement that corresponds to the national interests of both countries,” said the premier.
Customs announcements by letter
Around two weeks ago, US President Japan sent a customs announcement by letter. It stated that all products from the Asian business nation, which are introduced to the United States, would be charged for 25 percent from August 1st. This has now been reduced to 15 percent.
According to Japanese information, the agreement does not extend to the 50 percent tariffs that the United States raise on steel and aluminum imports. Trump had sent customs letters with different sentences to countries. There is still no agreement in the customs conflict with the European Union.
dpa
Source: Stern
