US and Japan reach “Massive” Trade Deal, Trump Claims
Washington D.C. – U.S. President Donald Trump announced Tuesday that the United States has finalized a “massive” trade deal with Japan,one of its largest trading partners.Trump stated on social media that the agreement would involve Japan investing $550 billion into the U.S. and imposing a 15% reciprocal tariff. He also indicated that Japan would open its economy to American goods, including cars, trucks, rice, and certain agricultural products.
The declaration follows a visit by Japan’s chief trade negotiator,Ryosei Akazawa,to the White House,who posted on Facebook with the hashtag “Mission accomplished.” trump, speaking at a White House event, described the deal as “the largest trade deal in history” with Japan, emphasizing that it would be beneficial for all parties involved. He also indicated that a trade agreement with the European Union would be announced on Wednesday, with further deals anticipated.
However, Japan’s Prime Minister Shigeru Ishiba, speaking to reporters on Wednesday, stated that he could not comment on the outcome of the negotiations until the details of the agreement are thoroughly examined.
This progress comes after President Trump had previously threatened a 25% tariff on Japanese exports to the U.S. if a new trade deal was not reached before August 1st. This threat was a slight increase from a previously announced 24% tariff rate. Japanese vehicle imports into the U.S. are already subject to a 25% tariff. The April tariff plan, which affected numerous U.S. trading partners, was temporarily paused for 90 days following global market volatility, providing an opportunity for Tokyo’s trade representatives to negotiate with their Washington counterparts.
In response to the news, Japan’s benchmark share index, the Nikkei 225, saw an increase of approximately 2% on Wednesday morning in Tokyo.Shares of major automotive companies, including Toyota, Nissan, and Honda, experienced a jump after broadcaster NHK reported that existing tariffs on Japanese carmakers would be reduced.
The timing of this apparent trade agreement coincides with Prime Minister Ishiba facing pressure to resign. His Liberal Democratic Party (LDP) recently lost its majority in Japan’s upper house elections over the weekend, following a similar loss in the more powerful lower house the previous year.
