Trump announces a trade agreement with Japan that lowers the rate to 15%

WASHINGTON – President Donald Trump announced a commercial framework with Japan on Tuesday and placed a 15% tax on goods imported from that nation.

“This deal will create hundreds of thousands of jobs – there has never been anything like that,” Trump has posted the truth of the truth, adding that the United States “will always have a great relationship with the Land of Japan.”

The president said that Japan “would invest in my direction” $ 550 billion in the US and “open” his economy for American cars and rice. The tax of 15% on imported Japanese goods is a meaningful decrease compared to the 25% rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said that from 1 August would be levied.

At the beginning of Wednesday, Ishiba recognized the new trade agreement and said that it would benefit both parties and help them work together.

With the announcement, Trump tries to appoint his assets as a dealer – even if his rates, when he was initially announced at the beginning of April, led to a market panic and fear of slower growth that seem to have been declining at the moment. The most important details remained unclear from his function, such as or by Japanese cars, a higher 25% rate would be confronted that Trump had imposed on the sector.

But the framework fits a growing pattern for Trump, who would like to portray the rates as a profit for the US, his administration says that the income will help reduce the budget deficit and that more factories will move to America to prevent import tax and make imbalances disappear.

The wave of rates remains a source of uncertainty about whether it could lead to higher prices for consumers and companies if companies easily pass on the costs. The problem was clearly seen on Tuesday after General Motors had reported a decrease of 35% in the net result in the second quarter, because it warned that the rates would attribute in the coming months, causing his shares to struggle.

Since the deadline of August 1 for the tariff rates in his letters is approaching world leaders, Trump is also approaching announced a commercial framework for the Philippines That would impose a rate of 19% on his goods, while American products would not get import tax. The president also confirmed his 19% rates on Indonesia.

According to the Census Bureau, the US ran a trading balance of $ 69.4 billion on goods with Japan with Japan.

America had a trade on -balance of $ 17.9 billion with Indonesia and an imbalance of $ 4.9 billion with the Philippines. Both countries are less prosperous than the US and an imbalance means that America imports more from those countries than exporting them.

The president will impose the broad rates mentioned on 1 August in his recent letters to other world leaders, as a result of which questions are asked about whether there will be any breakthrough in conversations with the European Union. During a dinner on Tuesday, Trump said that the EU would be in Washington on Wednesday for trade discussions.

“We have Europe tomorrow, the next day,” Trump told the guests.

Earlier this month, the president sent a letter that endangered the 27 Member States in the EU with 30% taxes on their goods that must be imposed from 1 August.

The Trump government has a separate negotiation period with China, which is currently running up to and including 12 August, because goods from that country are charged with an extra basic line of 30%.

Treasury Secretary Scott Bessent said he would be in the Swedish capital of Stockholm next Monday and Tuesday to meet his Chinese counterparts. Bessent said his goal is to eliminate the US economy from consumption and to enable more consumer expenditure in the production-heavy Chinese economy.

“President Trump makes the US again in a production economy,” Bessent said in the Fox Business Network Show Mants with Maria. “If we could do that together, we would do more production, they make more consumption. That would be a home run for the world economy.”