President Donald Trump announced a “massive” commercial agreement with Japan that establishes 15%reciprocal tariffs. The Covenant provides investments for US $ 550,000 million in the United States and arrives days after an electoral defeat of Japanese ruling.
The president of the United States, Donald Trump, An announced a New tariff agreement With Japan which includes “reciprocal” levies of 15%. The president described the pact as “giant, perhaps the largest ever reached,” and said he contemplates Japanese investments in the United States for a value of US $ 550,000 million, which, he said, will generate “hundreds of thousands of jobs.”
“We have just closed a massive agreement with Japan ”, Trump wrote on his social truth network. The announcement caused an immediate movement in international trade: several ships loaded with copper accelerated their arrival in US ports, trying to enter before the new tariffs enter into force.
For his part, Japanese prime minister, Shigeru Ihiba, was cautious when referring to the announcement. “I can’t comment until you have carefully examined the details of the agreement,” he told the press in Tokyo. However, he added that the Japanese government is confident that the pact will protect national interests.
The same day, the main Japanese negotiator in tariff matters, Ryosei Akazawa, celebrated the understanding reached by publishing on the social network X: “Mission fulfilled.” It should be remembered that Japanese imports were already subject to a 10% tariff, and that Trump had warned that he would elevate him to 25% as of August 1 if an agreement was not reached.
Japanese chancellor, Takeshi Iweaya, had held recent conversations with the US Secretary of State, Marco Rubio, within the framework of the Asean Ministerial Meeting, on July 11.
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What does the US-Japan trade agreement imply
Japan was the fifth commercial partner of the United States in 2024, Representing 4.3% of total trade and more than 148,000 million dollars in imports, according to official data. This new agreement adds to which the Trump administration has already closed with other countries such as the Philippines, Indonesia, the United Kingdom and Vietnam.
The announcement also occurs just two days after the coalition ofThe Prime Minister ishiba suffered an electoral defeat in the Japanese upper house, A political setback that could be cushioned by this commercial understanding.
In a context of growing inflation – with duplicate rice prices after Russian invasion to Ukraine in 2022 – Japan feared the impact that a tariff increase by Washington would have. Strategic sectors such as the automotive industry, which employ 8% of the country’s workers, already suffer the consequences of 25% tariffs Tax for the Trump administration.
Source: Ambito
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