What are the key details of the U.S.-Japan trade deal? | Asked & Answered
President Trump announced that the U.S. and Japan have agreed to a new trade deal. Kristi, what are the key details of the agreement? The trade deal addresses some of the U.S.’s major concerns While offering Japan some relief on tariffs. So essentially, Japan will face 15% reciprocal tariffs instead of the 25% that was initially proposed. And also on automobiles, which is a very key issue for Japan, They will face a 15% tariff instead of the 25% tariff that has been in place. on the Japanese side, They offered increased investment of 550 billion dollars into the U.S. economy, particularly focusing on sectors that are key to U.S. economic security. There have also been discussions of increased market access for U.S. products, particularly in agriculture. Japan has said that it will not change its quota for rice, for example, but it will increase the proportion of U.S. rice that is imported. So the deal appears to represent a good compromise between the two sides, although Japan will still face significant 15% tariffs, which will have an impact on its economy. So what happens next? Next, we still have to find out much about the details of the deal. Several different announcements have been made, but it remains to be seen exactly how this will play out in the weeks to come. In Japan, they’ve just had a major election this past weekend, and it appears that there are increasing calls for Prime Minister Ishiba to step down. Ishiba was trying to stay on, arguing that his stability was necessary for U.S. tariff negotiations. But with the deal now apparently done, It seems that he may be leaving office in the near future, but that remains to be seen.
President Trump announced that the U.S. and Japan have agreed to a new trade deal. What are the key details of the agreement? What happens next? We turned to CSIS expert Kristi Govella for answers.
Learn more: https://www.csis.org/analysis/assessing-us-japan-trade-deal-announcement