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France 24
an hour ago
- Business
- France 24
Trump announces 'massive' trade deal with Japan, 15 percent tariff on exports
President Donald Trump said Tuesday that the United States had agreed to a "massive" trade deal with Japan that would include a 15 percent tariff on its exports. The two countries have been locked in negotiations for months since Trump launched his global trade offensive, with levies targeting steel and automobiles -- both important Japanese exports -- seen as particular sticking points. Trump had previously threatened Japan, a major US trading partner, with a tariff of 25 percent beginning August 1 if a deal was not reached. "We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump announced on his Truth Social platform. He said that under the deal, "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits." He did not provide further details on the unusual investment plan, but claimed the deal "will create Hundreds of Thousands of Jobs." Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting. "As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement," Ishiba told reporters in Tokyo after Trump's announcement in Washington. Rice imports? Japan has agreed to "open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things," Trump said. Rice imports are a sensitive issue in Japan, and Ishiba's government had previously ruled out any concessions on the topic. Japan's Nikkei index bounced over one percent on news of the deal, with Japanese auto stocks rising six percent. The deal comes after Ishiba faced a bruising weekend election that left his coalition without a majority in the upper house. Trump has been under pressure to wrap up trade pacts after promising a flurry of deals ahead of his August 1 tariff deadline. Earlier on Tuesday, he announced a deal had been reached with the Philippines which would see the country face 19 percent tariffs on its exports. The White House also laid out details of a deal with Indonesia, which would see it ease critical mineral export restrictions and also face a 19 percent tariff. Similar agreements have been struck with the United Kingdom and Vietnam, while negotiations are ongoing with the top three largest US trading partners, China, Canada and Mexico. After an escalatory tit-for-tat with Beijing, the two major economies agreed to a temporary lowering of tariffs, with another round of negotiations expected next week in Stockholm. Since returning to the White House in January, Trump has imposed a sweeping 10 percent tariff on allies and competitors alike, alongside steeper levels on steel, aluminum and autos.
Yahoo
2 hours ago
- Automotive
- Yahoo
Trump announces trade deal with Japan that lowers threatened tariff to 15%
WASHINGTON (AP) — President Donald Trump announced a trade framework with Japan on Tuesday, placing a 15% tax on goods imported from that nation. 'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,' Trump posted on Truth Social, adding that the United States 'will continue to always have a great relationship with the Country of Japan.' The president said Japan would invest 'at my direction' $550 billion into the U.S. and would 'open' its economy to American autos and rice. The 15% tax on imported Japanese goods is a meaningful drop from the 25% rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting Aug. 1. With the announcement, Trump is seeking to tout his ability as a dealmaker — even as his tariffs when initially announced in early April led to a market panic and fears of slower growth that for the moment appear to have subsided. Key details remained unclear from his post, such as whether Japanese-built autos would face a higher 25% tariff that Trump imposed on the sector. But the framework fits a growing pattern for Trump, who is eager to portray the tariffs as win for the U.S. His administration says the revenues will help reduce the budget deficit and more factories will relocate to America to avoid the import taxes and cause trade imbalances to disappear. But the wave of tariffs continues to be a source of uncertainty about whether it could lead to higher prices for consumers and businesses if companies simply pass along the costs. The problem was seen sharply Tuesday after General Motors reported a 35% drop in its net income during the second quarter as it warned that tariffs would hit its business in the months ahead, causing its stock to tumble. As the Aug. 1 deadline for the tariff rates in his letters to world leaders is approaching, Trump also announced a trade framework with the Philippines that would impose a tariff of 19% on its goods while American-made products would face no import taxes. The president also reaffirmed his 19% tariffs on Indonesia. The U.S. ran a $69.4 billion trade imbalance on goods with Japan last year, according to the Census Bureau. America had a trade imbalance of $17.9 billion with Indonesia and an imbalance of $4.9 billion with the Philippines. Both nations are less affluent than the U.S. and an imbalance means America imports more from those countries than it exports to them. The president is set to impose the broad tariffs listed in his recent letters to other world leaders on Aug. 1, raising questions of whether there will be any breakthrough in talks with the European Union. At a Tuesday dinner, Trump said the EU would be in Washington on Wednesday for trade talks. The Trump administration has a separate negotiating period with China that is currently set to run through Aug. 12 as goods from that nation are taxed at an additional 30% baseline. Treasury Secretary Scott Bessent said he would be in the Swedish capital of Stockholm next Monday and Tuesday to meet with his Chinese counterparts. Bessent said his goal is to shift the American economy away from consumption and to enable more consumer spending in the manufacturing-heavy Chinese economy. 'President Trump is remaking the U.S. into a manufacturing economy,' Bessent said on the Fox Business Network show 'Mornings with Maria.' 'If we could do that together, we do more manufacturing, they do more consumption. That would be a home run for the global economy.' Josh Boak, The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


NHK
16-07-2025
- Automotive
- NHK
Trump again slams Japan, claiming market remains closed
US President Donald Trump came out with another criticism of Japan's trade stance on Tuesday, claiming the country refuses to "open up." Speaking to reporters at an air force base outside Washington, Trump said: "I will veer from those deals on occasion when somebody is willing, like if Japan would open up their country, they don't do that and they just don't do that. And I don't either, I don't subscribe to it one way or another. But they won't do that. We might just stick with a letter." The president was referring to letters he has sent to foreign leaders informing them of new tariff rates. Trump has lately made a string of negative comments about Japan. He said on Sunday the country has lagged the European Union in opening its market. Trump has also said the US imports large volumes of Japanese cars, although Japan does not buy US vehicles. The president is threatening a 25-percent tariff on Japanese imports starting August 1 if the country does not take action.


Telegraph
03-07-2025
- Business
- Telegraph
Trump tries to sell rice to the Japanese
Japan's attempt to strike a deal with the US before Donald Trump's deadline next week has hit an unlikely sticking point: rice. As part of the negotiations, Mr Trump has revealed he wants Tokyo to buy more American rice. 'Japan, they won't take our RICE, and yet they have a massive rice shortage,' the president posted on Truth Social this week. In a later briefing to journalists on Air Force One, he branded the Japanese as 'spoilt' for eschewing American rice, even though 'they need rice so badly'. The issue has become a major sticking point, jeopardising the prospect of a US-Japan deal ahead of Mr Trump's self-imposed deadline to strike a deal by next week. 'I'm not sure if we're going going to make a deal, I doubt it, with Japan,' Mr Trump said. 'What I'm going to do is, I'll write them a letter saying, 'We thank you very much and we know you can't do the kind of things that we need. And therefore you'll pay 30pc, 35pc', or whatever the number is that we determined.' America and Japan, which is the world's fifth-largest economy, share around £140bn of two-way trade. Japan is one of the world's top 10 consumers of rice, but the country has faced a domestic crisis after the cost of the crop surged over the past year. 'I have repeatedly stated that agriculture is the foundation of the nation,' Ryosei Akazawa, Japan's economy minister, told a press conference this week. 'In negotiations with the United States, our stance remains unchanged. We will not engage in talks that would sacrifice the agricultural sector.' As Japan's lead negotiator, Mr Akazawa is tipped to make another flying visit to Washington this weekend – his eighth – as the two sides try to emulate Britain, China and Vietnam in striking an agreement with Mr Trump's administration. India, South Korea, the European Union and several south-east Asian countries are also trying to get a deal over the line before the 90-day pause on US tariffs ends on July 9. Rice prices have jumped fourfold in the past year. Heatwaves have hit the harvest, a tourist boom has fuelled demand from restaurants, and there have been bouts of typhoon or earthquake-related panic buying. Since March, the Japanese government has released 300,000 tonnes of rice from its stockpile. But supply chain bottlenecks have prevented buyers from feeling the full benefit. The issue has caused anger, which has put politicians under pressure ahead of an upper house election this month. In May, Taku Eto was forced to resign as farm minister over the issue, after admitting he never buys rice because his supporters give it to him for free. Japan has steep barriers to imported rice. Only the first 100,000 tonnes of imported 'staple rice' – the most popular variety for Japanese consumers – can enter Japan tariff-free. After that, the rice attracts a levy of 341 yen (£1.73) per kilogram. Another 670,000 tonnes is allowed for use in processed foods or animal feed, a tiny fraction of Japan's annual domestic harvest, which is typically almost 7m tonnes. Half of its tariff-free imports already come from the US. At a government tender for tariff-free shipments held last week, US producers grabbed more than 80pc of the available quota. 'Rice imports from abroad, including from the US, have increased 120 times from a year earlier,' Shinjiro Koizumi, Japan's agriculture minister, said this week. The rice negotiations could stall because Americans produce long-grain rice, and the Japanese prefer short-grain. Aeon, a major Japanese retailer, is trying to woo the Japanese with California-grown rice, and some Japanese restaurants are blending domestic and imported rice.


Japan Times
06-06-2025
- Business
- Japan Times
U.S. envoy plays down Washington-Tokyo trade row
U.S. Ambassador to Japan George Glass played down concerns over the U.S.-Japan trade row Friday, but emphasized the need for Tokyo to contribute more on the security front. Speaking to business leaders and political heavyweights in Tokyo, Glass dismissed concerns that tensions over unilateral U.S. tariffs could lead to a repeat of the trade war between the two countries in the 1980s. 'I know that some of us who would look at our current trade negotiations and see trouble ahead for the great alliance. That can't be further from the truth,' Glass said, adding that the United States and Japan have 'an alliance greater than any one set of trade talks or defense negotiations.' Glass' remarks came as Japan's chief tariff negotiator, Ryosei Akazawa, met with U.S. Commerce Secretary Howard Lutnick in Washington for a fifth round of trade talks. Glass called for further U.S.-Japan cooperation against 'a coercive and corrupt China' as Beijing strengthens ties with Russia, North Korea and Iran, spreading disruption in the region. While applauding the Self-Defense Forces' launch of its Joint Operations Command in March — as well as Tokyo's commitments to increase defense spending — Glass also echoed the demands made by U.S. President Donald Trump and Defense Secretary Pete Hegseth that Japan contribute more to the two countries' security alliance. In a speech on May 31 outlining U.S. defense strategy in Asia, Hegseth urged America's Asian allies to spend 5% of their gross domestic product (GDP) on defense, saying that 'it doesn't make sense for countries in Europe to do that while key allies in Asia spend less." Japan is aiming to raise defense spending to 2% of GDP by fiscal 2027. 'We are prepared to ask our warriors to stand in harm's way, but to do that, we must equip them for that mission,' Glass said, insisting that the codevelopment, production and sustainment of systems and equipment is crucial for the allies. Glass has been busy since touching down in late April, meeting top officials and business leaders and visiting Japanese cities home to U.S. military bases. He toured Misawa Air Base in Aomori Prefecture on Wednesday, meeting U.S. and Japanese service members, who he said demonstrated their full commitment to confronting adversaries, namely China. Glass' antagonistic stance toward China was reminiscent of his predecessor, Rahm Emanuel –– an unexpected approach from an ambassador who was initially expected to act more like a businessman than a political operator. On Thursday, Glass had a tit-for-tat exchange on X with Chinese Ambassador to Japan Wu Jianghao and wrote, 'The United States welcomes students committed to learning and expanding their minds — like all those who fled China for the United States after the Tiananmen Square Massacre.'