Trump says US has struck trade deal with Japan
President Donald Trump said that the US has accepted a “big” trade agreement with Japan, one of the biggest trade partners of the country.
While Japan agrees to invest $ 550 billion (£ 407 billion) in the US, the goods sold to the United States will be taxed by 15% when they reach the country – under the 25% tariff threatened by Trump.
Trump said that on social media, Japan will open the economy of Japan to US goods, including cars, trucks, rice and some agricultural products.
Japanese Prime Minister Shigeru Ishiba, The announcement, “the United States and countries with surplus countries to date the lowest figure,” he said.
“I have just signed the biggest trade agreement in history, I think the biggest agreement with Japan,” Trump said at a White House event on Tuesday evening.
“There were the best people here and we worked long and hard on it. And too much for everyone. I’m always saying it should be great for everyone. This is a lot,” he added.
Ishiba said that on Wednesday, the agreement would mean that the US tariffs on vehicles will fall from 25% to 15%.
However, the tax is above 10% Trump from Japan and other countries when it suspends higher mutual tariffs between April and July.
Ishiba said: “We are the first to reduce the tariffs in the automobile and automobile pieces without any limitation in the world.”
The UK cars sent to the United States are taxed by 10% when they reach the American coast, but this is limited to 100,000 vehicle quota.
“The agreement does not involve the reduction of the tariffs on the Japanese side.”
The BBC contacted the White House and Japan Embassy in Washington for more information about the trade agreement.
Shigeto Nagai, a research company Oxford Economics, told BBC News, Japan’s “best compromise at this stage”, which reduces its main tariff rate to 15%.
The planned investment in the United States, “a great support to restore the United States and Trump’s story of more work to play US production”.
In a letter sent to Japan this month, Trump threatened a 25% tariff in the export of the country to the United States just above the so -called Liberation Day on April 2, if a new trade agreement was not made before August 1st.
The April Tariffs Plan, which includes tasks for the US trade partner around the world, was paused for 90 days following the worldwide market turmoil. He allowed Tokyo’s trade representatives to negotiate with his colleagues in Washington.
The Nikkei 225, a Japanese stock index, was more than 3% higher in Tokyo on Wednesday and has gained strong gains for shares in the motor industry giants, including Toyota, Nissan and Honda.
The agreement is coming because it is under the pressure of resignation after losing the majority of the country’s upper house in the upper house of the Liberal Democratic Party of Ishiba (LDP).
Last year, LDP had lost its majority in Japan’s stronger lower house.
