President Donald Trump has announced a trade framework with Japan, claiming it is 'perhaps the largest Deal ever made' and will generate 'hundreds of thousands of jobs' and billions of dollars for the United States. In a post on his Truth Social platform, Trump revealed that a 15 per cent tax on goods imported from Japan had been agreed, a significant reduction from the 25 per cent rate he had threatened to impose from August 1.
Trump said Japan would invest $550 billion in the US 'at my direction' and would open its economy to American-made vehicles, rice and other products. Japanese Prime Minister Shigeru Ishiba confirmed the agreement early Wednesday in Tokyo, stating it would benefit both sides and that his government was 'determined to protect national interests'.
The announcement buoyed Japanese markets, with the benchmark Nikkei index climbing 2.6 per cent to its highest in a year. Shares of automakers surged, with Toyota rising more than 11 per cent and Honda and Nissan both gaining over 8 per cent.
However, the deal drew criticism from US automakers, who expressed concern over the low import tariffs on Japanese goods compared to the 25 per cent rate still applied to imports from Canada and Mexico. Matt Blunt, head of the American Automotive Policy Council, said: 'Any deal that charges a lower tariff for Japanese imports with virtually no US content than the tariff imposed on North American-built vehicles with high US content is a bad deal for US industry and US auto workers.'
