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US President Donald Trump on Tuesday unveiled a new trade framework with Japan, announcing a 15 per cent tax on imported Japanese goods—down from the previously threatened 25% rate. The agreement, he claimed, would lead to massive job creation and deeper economic ties between the two countries.
“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,” Trump posted on Truth Social, adding that the United States “will continue to always have a great relationship with the Country of Japan.”
The president also declared that Japan would invest $550 billion into the U.S. economy “at my direction,” while agreeing to open its markets to American rice and automobiles.
Japanese PM Welcomes Deal, Calls It Mutually Beneficial
Early Wednesday, Japanese Prime Minister Shigeru Ishiba confirmed the agreement, calling it a positive step forward in bilateral relations.
Ishiba acknowledged the new trade agreement, saying it would benefit both sides and help them work together.
Though specifics remain unclear—including whether Japanese auto exports will still face a higher 25% tariff—the announcement marks another chapter in Trump’s efforts to frame tariffs as an economic win for the US
Economic Risks Persist Amid Corporate Concerns
Trump has consistently positioned himself as a dealmaker who uses tariffs to gain leverage, despite initial fears earlier this year that the levies could slow economic growth. The White House argues that tariff revenues will help reduce the federal deficit and incentivize manufacturers to shift production to US soil.
Yet the broader economic impact remains uncertain. Critics warn that import taxes could translate into higher prices for American consumers and businesses. This concern gained traction Tuesday when General Motors reported a 35% decline in quarterly net income, attributing the slump to the impact of tariffs. The news sent its stock sharply lower.
Key Details Still Missing on Auto Tariffs
The administration has not clarified whether Japanese-built vehicles will face a separate 25 per cent import duty previously floated by Trump. Industry analysts caution that such a move could further disrupt global supply chains and increase costs for automakers and consumers alike.
For now, the new U.S.-Japan trade framework signals a temporary cooling of tensions, but the long-term effects of Trump’s evolving tariff strategy remain to be seen.
English (US) ·