Washington: The President of the United States, Donald Trump announced the conclusion of what he described as a massive trade and investment deal with Japan, following weeks of pressure that included threats to impose steep tariffs if an agreement was not reached.
According to Kuwait News Agency, in a post on the social media platform Truth Social, Trump stated, "We just completed a massive Deal with Japan, perhaps the largest Deal ever made. 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." He added that the agreement would also see Japan open its market to US exports, including vehicles, rice, and other agricultural products, "perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things," he said.
According to the US president, the deal also includes reciprocal tariffs, with Japan agreeing to impose a 15 percent rate on certain US goods-a rate that will also apply to Japanese products entering the U.S. "Japan will pay Reciprocal Tariffs to the United States of 15%," he wrote.
Trump hailed the agreement and described it as a win for American workers and a testament to the enduring US-Japan relationship. "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," he said.
The announcement follows a tense period as earlier this month, Trump threatened to impose a 25 percent tariff on Japanese goods starting August 1 if a deal was not reached. That warning came after several unsuccessful rounds of negotiations.
The Trump administration had imposed 24 percent tariffs on Japanese imports, later reducing them to 10 percent for a temporary 90-day period to allow space for negotiations.