US President Donald Trump announced the conclusion of a trade agreement with Japan, which introduces a 15% tax on goods imported from that country.
“This deal will create hundreds of thousands of jobs. Nothing like this has ever happened before,” Mr. Trump wrote in Truth Social, adding that the United States “will always have a great relationship with Japan.”
The president noted that Japan will invest “on my instructions” $550 billion in the United States and will “open” its market to American cars and rice.
The 15% tax on Japanese goods is a significant reduction from the 25% rate that Mr Trump recently notified Japanese Prime Minister Shigeru Ishiba would take effect on August 1.
On Wednesday morning, Mr Ishiba expressed support for the new trade deal, saying it would benefit both sides and help them cooperate.
With the comment, Mr Trump is seeking to show off his negotiating skills – even though his tariffs, announced in early April, sparked market panic and fears of a growth slowdown that now appear to have subsided.
His message left unclear important details, such as whether Japanese cars would be hit with the higher 25 percent tariff Mr Trump imposed on the sector.
Still, the approach fits a growing trend under Mr Trump, who has sought to portray the tariffs as a success for the US. His administration argues that the revenue will help reduce the budget deficit and more factories will move to America to avoid import duties and address trade imbalances.
The wave of tariffs continues to be a source of uncertainty about whether it could lead to higher prices for consumers and businesses if firms simply pass on their costs to consumers.
The issue was highlighted Tuesday when General Motors reported a 35% drop in second-quarter net profit, warning that tariffs would hurt its business in the coming months, sending its shares lower.
Sourse: breakingnews.ie
