US-Japan Trade Deal Hinges on Fund That Remains a Puzzle
The US and Japan have reached what President Donald Trump called the biggest trade agreement in history this week.
However, Tokyo asks questions about the lack of details of the commitment to establish a US investment fund of $ 550 billion, and the applicability of an agreement that floats as a potential template for other major trade partners.
The Fund is a center of the agreement described by Trump and applying 15% tariffs to Japanese cars and other goods. Although the start date and other basic elements are still unknown, Treasury Secretary Scott Bessent warned that the US will monitor the application this week and will affect the rate up to 25% if Trump is not satisfied.
The leaders of the two countries seem to be talking for cross -purposes from time to time. The White House said it would be deposited over $ 550 billion under the US administration, and Trump said that 90% of profit on social media will be given to America. Prime Minister Shigeru Ishiba said that Japan will offer a mixture of up to 550 billion dollars of investment, credit and credit guarantee.
According to Japan’s chief negotiator Ryosei Akazawa, the state -owned organizations will be supported by Japan Bank’s International Cooperation and Nippon Export and Investment Insurance.
Exactly most of which and which time zone is unknown. In the financial year of 2024, the JBIC has invested about 263 billion ¥ in North America, or about 0.3% of the figure is currently being launched.
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“The Japanese will give to an operator and give it to an operator, and 90% of the United States will be divided into taxpayers, Howard Lotnick said.
Ishiba characterizes the Fund as a way to support the investment of Japanese companies in the United States. The Prime Minister stressed that it will benefit both Japan and the USA and will target strategically important industries.
Softbank Group Corp. Last year, the Nippon Steel Corp. announced an investment of $ 11 billion in the operations of the United States Steel Corp.’s operations until 2028 after the Pittsburgh -based producer’s purchase of $ 14.1 billion of the Pittsburgh -based manufacturer. Both companies have committed to creating important employment in the USA.
It is also unclear whether these figures will be accepted as part of the agreement by the United States.
“They came to us with the idea of a Japan-ABD partnership that they would provide for the major projects in the USA, a loan guarantee and financing for major projects in the United States. The authority added that the foreign direct investment promise is “all new capital”.
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The White House Information Page in the Trade Agreement, Japan’s 100 Boeing Co. In addition to the plane, he will buy billions of dollars worth of US defense equipment per year. Akazawa said that both commitments are based on Japanese airlines and the government’s current plans, respectively.
Akazawa said, “As a part of our efforts to strengthen Japan’s defense capabilities on the US side, we have explained the thoughts behind their defense equipment recruitment,” Akazawa said. “But to strengthen the defense was not a matter of trade and tariff negotiations.”
Akazawa said he hoped that the low automobile tariff rate will enter into force as soon as possible and expects a wider tax on a wider tax than 1 August. He added that there is no discussion or monitoring discussion.
Akazawa, shortly after returning to Japan, told journalists in Tokyo, “I traveled to the United States eight times,” he said. “But I don’t remember how to implement our contract or how to be sure of this.”
This article was created from an automatic news agency feeding without changing the text.
