US President Donald Trump took to Truth Social to announce that he has completed, what he called, the “largest deal in history” with Japan. As part of the deal, the US has lowered its tariffs, and Japan has promised to open doors to American goods.
Although specific details of the trade agreement are still unclear, Trump has said that Japan will partner with the US to establish a joint venture for liquefied natural gas (LNG) in Alaska.
Japan-US deal: Key takeaways
1- As part of the deal, Japan will invest $550 billion (around Rs 4.57 lakh crore) in the United States and will receive around 90 per cent of the profits.
2- The deal, as per Trump, will also generate employment for thousands of people. He shared about this on Truth Social and added that there has “never been anything” like this.
3- Japan will open trade doors for American goods, including cars, trucks, rice, among other things.
4- Trump has reduced his “kind, reciprocal tariffs”, and Japan will now pay as little as 15 per cent reciprocal tariffs to the US. This is down from a proposed 25 per cent ahead of the August 1 deadline for higher tariffs.
5- While Trump mentioned easing tariffs on Japan, he did not say if the US would be levying fewer tariffs on automobiles.
6- After Trump announced that deal, the stocks in Japan rallied higher and the yen strengthened against the dollar.
7- The deal will also help Japan to avoid recession, as per an economist quoted by Reuters. “With the 15% tariff rate, I expect the Japanese economy to avoid recession,” Kazutaka Maeda, an economist at Meiji Yasuda Research Institute.
US and Japan worked long and hard: Trump
“This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan,” Trump wrote on Truth Social.
In another Truth Social post, he said that the US and Japan worked “long and hard” on what he called the “great deal for everybody”.
“A lot different from the deals in the past. I can tell you that. But we’re doing really well as a country. We’re strong. We’ve a lot of money flowing in. Tariffs are kicked in better than anybody other than me…,” Trump said after striking a deal with Japan.