Trump announces ‘massive’ Japan trade deal

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WASHINGTON: US President Donald Trump on Tuesday announced a “massive” trade deal with Japan, which reduced the tariff by 25 percent from a deadline on August 1 by 25 percent.

If Trump has not made any deal with the United States until next month, Trump has vowed to target dozens of countries.

So far, Trump has only announced agreements with Japan, the UK, Vietnam, the Philippines and Indonesia, while talks with other trade partners are underway.

“We have just signed a massive deal with Japan, probably the biggest deal with Japan,” Trump said on his social platform.

“Under the deal,” Japan, on my instruction, will invest $ 550 billion in the United States, which will make 90 % profit, “Trump said.

He did not provide further details about the extraordinary investment project, but said the deal would “create hundreds of jobs.”

Japanese imports in the United States were already subject to a 10 % tariff, which would have been 25 % on August 1 without a deal.

25 % duties on Japanese autos – an industry with 8 % Japanese jobs – already in place, as well as 50 % on steel and aluminum.

Japanese Prime Minister Shigro Esiba said in Tokyo on Wednesday that Autos Levy had been cut by 15 %.

“We are the world’s first (country) to reduce revenue on automobiles and auto parts, with no volume limit,” he told reporters.

“We think it is a great achievement that we have been able to get the largest cut (in taxes) in those countries with trade surpluses with the United States,” he said.

It increased Japanese auto stocks on Wednesday, including Toyota, which fought more than 12 %.

In June, Japanese cars fell by 26.7 % in US shipment, fearing that Japan could fall into technical recession.

Last year, Japan’s 21.3 trillion yen ($ 142 billion) had about 28 percent of the world’s largest exports of exports.

For Trump’s anger, Japan, US -made cars, are poor sales in Japan, with only hundreds of annual sales, including annual sales for the choice of ordinary motors, while millions of Toyotas purchased by US motorcycles.

The US president also wanted Japan to increase imports of rice, which has increased in Asian giant, and US oil and gas in recent months.

Import of rice

But Trump said Tuesday that Japan had “agreed to open its country for trade, including cars and trucks, rice and some other agricultural products and other things.”

Rice imports are a sensitive issue in Japan, and the Esba government – who lost the majority of the upper house in the elections on Sunday – had previously rejected any privileges.

Ashiba, whose future is uncertain after the elections, said Wednesday that the deal does not sacrifice Japan’s agricultural sector.

Before the last date of the August 1 tariff, Trump has faced pressure to wrap up trade agreements.

Earlier on Tuesday, he announced that an agreement was signed with the Philippines in which the country would face 19 % of its exports on its exports.

The White House also provided details of an agreement with Indonesia, which will reduce the significant restrictions on mineral exports and also face 19 % of revenue, which is less than 32 %.

An American official told reporters on Tuesday that Indonesia’s goods were transferred to avoid high duties, however, it would be given 40 % tax.

After a growing tight tat with China, the two major economies agreed to temporarily reduce the tariff, with another round of talks next week in Stockholm.

Since returning to the White House in January, Trump has imposed 10 % tariffs on allies and rivals, as well as a standing level on steel, aluminum and autos.

Legal challenges are underway to Trump’s non -Sector tariff.