Washington: US President Donald Trump has announced a long-awaited trade agreement with Japan, a framework between allies and major trading partners that appeared elusive just weeks ago.
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Trump said on Truth Social last night.
As part of the deal, US importers will pay 15 percent “reciprocal” tariffs on Japanese goods exported to the United States. Also, Japan will invest US$550 billion dollars into the United States, the president said.
Trump noted that the US “will receive 90 percent of the profits”, without elaborating on how those investments would work or how profits would be calculated, reported CNN.
“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 percent,” Trump posted.
The Japan agreement was the third such trade-related news Trump announced yesterday. This comes after months of negotiations with key trading partners like the European Union, South Korea, India and dozens of others at a standstill as Trump’s latest August one deadline for higher tariffs looms.
