Trump announces trade agreements with Japan and lowers tariffs

US President Donald Trump has announced a “massive” trade agreement with Japan. Trump said on “mutual” tariffs, Trump said on his Truth Social platform and added that it was “perhaps the biggest deal that was ever done”. There has never been anything like that. Before that, he had requested tariffs of 25 percent. In response to Trump’s message, the stock exchange in Tokyo increased.

In the article, Trump also referred to Japan’s investments in his “instruction” in the amount of $ 550 billion (around 430 billion euros) in the United States, with 90 percent of the profits in the United States. Japan’s head of government Shigeru Ishiba, however, confirmed that the additional oils for cars to 15 to 15 percent confirmed.

Trump did not provide any further information about the investment plan – he only announced the creation of “hundreds of thousands of jobs” by the agreement.

Japan will “open its market market, including cars and trucks, rice and certain other agricultural products,” added Trump. Rice imports are a sensitive topic in Japan, and the government of Ishibas had previously excluded any concessions on this question.

After the announcement of Trump’s announcement, Ishiba initially said in front of journalists in Tokyo that he could only comment if “we have carefully checked the details of the agreement”.

He then later said: “We agreed to halve the additional customs rate from 25 percent on cars and auto parts to 15 percent since April”. Japan is the first country in the world “that a reduction in the US supplement to cars and auto parts without limitation or restrictions on the crowd”, he added.

Of all countries that had a trade surplus with the United States, his country concluded the best contract, the head of government said. He announces that rice imports from the USA would be increased.

The US President recently threatened Japan with additional tariffs of 25 percent if no agreement was reached by August 1st. In the past few weeks, the United States has already closed trade agreements with the Philippines, Indonesia, Great Britain and Vietnam.

In April, Trump imposed a base tariff of ten percent for almost all trading partners. Around two weeks ago, US President Japan sent a customs announcement by letter. It stated that 25 percent of tariffs will be charged on all products from the Asian business nation, which are introduced to the USA from August 1st. This has now been lowered to 15 percent.

Investors in Japan react euphorically to the trade agreement with the United States. In Tokyo, the 225 values increased 3.2 percent on Wednesday to 41,053 points. The broader topix was 3.1 percent higher in 2924 points. The auto values in particular benefited from the agreement.