Donald Trump announces US-Japan $839 billion trade deal, calls it ‘largest ever', as tariffs confirmed
In a post on Truth Social, Mr Trump also said that Japan will invest $US550 billion ($839 billion) into the United States, adding that the US will receive 90 per cent of the profits.
'We just completed a massive Deal with Japan, perhaps the largest Deal ever made,' Mr Trump wrote.
'Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits.
'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.
'Perhaps most importantly, Japan will open their Country to Trade, including Cars and Trucks, Rice and certain other Agricultural Products, and other things.
'Japan will pay Reciprocal Tariffs to the United States of 15%.'
Mr Trump said 'this is a very exciting time for the United States, highlighting the 'great relationship' with Japan.
The US President spoke from the White House after announcing the deal.
'A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief,' said Brian Jacobsen, chief economist at Annex Wealth Management.
In his tariff letter sent out to Japan earlier this month, Mr Trump had threatened a 25 per cent tariff on its exports to the US from August 1, one percentage point higher than the 24 per cent rate announced during his April 2 'Liberation Day' tariffs.
Japanese automobiles imported into the US already attract a 25 per cent tariff in line with the rest of the countries.
Auto exports to the US are a cornerstone of Japan's economy, making up 28.3 per cent of all shipments in 2024, according to customs data.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News AU
2 minutes ago
- Sky News AU
High-level Chinese diplomat probes Newcastle City Lord Mayor for AUKUS submarine location in private meeting
A high-level Chinese diplomat based in Australia has pressed Newcastle City Mayor Ross Kerridge for information on AUKUS nuclear submarines during a private meeting between the pair. Australia's ability to secure nuclear submarines is a main pillar of the trilateral AUKUS security agreement and the country has already committed $3 billion to assist United States defence manufacturing in exchange for being able to purchase Virginia class vessels. However, questions have been raised over the availability of US-built of submarines following the Trump administration's announcement it was reviewing the deal, which Australia sees as a critical defence investment of deterrence in the region. The Daily Telegraph has now revealed an encounter on July 17 where the future docking location of AUKUS submarines was discussed, prompted by the Consul General of China in Syndey, Wang Yu. According to minutes of the meeting obtained by masthead, notes taken show that the diplomat asked if submarines secured under AUKUS would be based at Newcastle. '(Consul General) explained that China is concerned that Chinese interests in Australia will be affected by strategic defence decisions,' the meeting document read, according to the masthead. 'For example, is Newcastle Port a potential base for AUKUS submarines? '(The Lord Mayor) explained that we are a nuclear free city, but we will not have the means to stop a decision of this nature taken by the state and/or federal governments. 'China expects that Australia and Newcastle will have good relations with other countries and is also looking to build good relations, but would not like us… to use our good relations with other countries to adversely affect China.' The Daily Telegraph also reported the New South Wales city's Taiwanese and Tibetan communities were talked about during the meeting. It comes just days after The Australian revealed Shanghai Xinyang Chamber of Commerce president Wang Yongxin's family ties to the purchase of commercial port properties at Newcastle and Kembla. Wang family members have reportedly denied they have links to the Chinese Communist Party's United Front. Meanwhile, there have been suggestions Australia may need to increase its financial commitments to ensure Virginia class submarines are provided in line with the terms of the original AUKUS agreement. Last month, Defence Minister Richard Marles said he was not prepared to "speculate" on the Trump administration's review of the pact and insisted the government's focus was directed at "pursuing the optimal pathway" that would see Virginia class submarines being available to Australia from 2032.
The Advertiser
5 minutes ago
- The Advertiser
Australia pays US second $800m for AUKUS amid review
Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine. Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine. Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine. Australia has paid the United States $A800 million in the second instalment under the AUKUS nuclear submarine deal, despite an ongoing formal review of the agreement by US President Donald Trump's administration. Prime Minister Anthony Albanese confirmed the latest instalment on Wednesday, following an initial $A500 million paid in February. In 2023, the United States, Australia and Britain unveiled details of a plan to provide Australia with nuclear-powered attack submarines from the early 2030s to counter China's ambitions in the Indo-Pacific. Australia committed to spend $A368 billion over three decades in its biggest-ever defence deal. Canberra is due to pay the US $A3 billion by the end of the year to support the expansion of American submarine shipyards, Reuters reported in April. "There's a schedule of payments to be made. We have an agreement with the United States as well as with the United Kingdom, it is about increasing their capacity, their industrial capacity," Albanese told national broadcaster ABC. "As part of that as well, we have Australians on the ground, learning those skills." Trump launched a formal review of AUKUS in June to examine whether the pact met his "American First" criteria. It will be led by Elbridge Colby, who in the past has expressed scepticism about AUKUS. Australia, which sees the submarines as critical to its own defence as tensions grow over China's military build-up, has maintained it is confident the pact will proceed. "We support AUKUS," Albanese said. "We have an agreement to a treaty level, with our partners, signed, of course in San Diego with the United States and United Kingdom." Washington will sell several Virginia-class nuclear-powered submarines to Australia, while Britain and Australia will later build a new AUKUS-class submarine.
Perth Now
32 minutes ago
- Perth Now
Extra $800m for AUKUS was scheduled, PM
Australia has sent another $800m to the US as part of the AUKUS deal, which the Trump administration has under review, but the Prime Minister says it was simply a part of the 'schedule'. Anthony Albanese was asked about the new payment that took the total to $1.6bn, which was reported in Nine newspapers on Wednesday. 'There is a schedule of payments to be made, we have an agreement with the United States as well as with the United Kingdom,' Mr Albanese told ABC's Afternoon Briefing. 'It is about increasing the capacity, their industrial capacity, and as part of that, we have Australians on the ground, learning the skills so that when it comes to the SSN-AUKUS, the submarines being built here in Australia, we have those skills.' Prime Minister Anthony Albanese says the $800m sent to the US for AUKUS was a scheduled payment. NewsWire / Martin Ollman Credit: News Corp Australia Defence Minister Richard Marles earlier confirmed the report saying 'the payments are occurring in line with Australia's commitment to contribute US$2bn by the end of 2025, which underscores our commitment to the successful delivery of AUKUS Pillar I outcomes'. The US' review was announced in June and is being headed up by Elbridge Colby, the US undersecretary of defence. Mr Colby recently made headlines when it was revealed he was pressuring the Australian and Japanese governments to reveal what they would do if China invaded Taiwan. The nuclear submarines are set to be built in Australia. NewsWire / Morgan Sette Credit: News Corp Australia The AUKUS deal is a long-term arrangement that will cost upwards of $268bn, and as much as $368bn, over the next 30 years. Australia would buy nuclear submarines from the US, while developing our own capacity to build submarines in Adelaide. The new payment came as Opposition defence spokesman Angus Taylor said he was 'worried' about the government's position on defence. 'I worry that the government – I think it's not just me worried, I think every expert looking at this is making these comments – they're deeply worried that we're not on our way to having the defence force we need in such an uncertain time,' Mr Taylor said. 'We've got authoritarian regimes around the world flexing their muscles.'
