Donald Trump has announced a trade deal with Japan, potentially resolving weeks of fraught negotiations that had caused economic uncertainty in Tokyo and mounting speculation about the future of Prime Minister Shigeru Ishiba. The US president said in a social media post: 'We just completed a massive deal with Japan,' adding that Japan would invest $550 billion into the United States.
Under the deal, Japanese imports to the US will face a 15% tariff, an improvement on the 25% Trump had threatened to impose from 1 August. Ishiba later confirmed that tariffs on cars and auto parts would be lowered to 15%, with no limits on volume. However, US tariffs of 50% on Japanese steel and aluminium are not part of the agreement, and it does not include any reference to defence spending, according to Japan's top tariff negotiator, Ryosei Akazawa.
Trump also claimed Japan would open its market to US products including cars, trucks, rice and certain agricultural items, which had been sticking points in negotiations. The deal follows agreements with the Philippines, Indonesia, the UK and Vietnam, as Trump faces pressure to wrap up trade pacts before his 1 August tariff deadline.
Ishiba, who faces growing opposition after his coalition lost its upper-house majority in elections last weekend, is reportedly considering resigning as prime minister by the end of next month, according to Japan's Mainichi newspaper. A senior administration official told NHK that Trump's post was 'accurate' and 'welcomed' by Japan. Shares in Japanese automakers surged after the announcement, with the Nikkei 225 index gaining more than one per cent.
