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$550 Billion Mega Deal Sealed with Japan



$550 Billion Mega Deal Sealed with Japan

Well, it looks like Japan and the United States’s relationship is going to get even tighter cuz they just signed a major trade deal that was announced on July 22nd of 20125. This trade deal was a significant agreement that was aimed at addressing trade imbalances and enhancing economic ties between the two nations who together account for 30% of global GDP which is nothing small to bo at. Now, some of the key points to this are tariff reductions specifically because there was a threatened 25% tariff that was going to be imposed on Japan if there was no trade deal reached by August 1st of 2025. So, part of this trade deal reduces that threatened 25% down to 15% including a pre-existing 2.5% tariff particularly on like automobile and automobile parts. In addition to that, Japan is committed to investing $550 billion in the US, primarily in sectors like pharmaceuticals and semiconductors through equity and loans to support Japanese businesses. Apparently, the United States is expected to receive 90% of the profits from these investments. Also, Japan is planning on opening its markets to US products like cars, trucks, rice, and other agricultural goods. Now, this is going to build on some previous agreements and is aiming to increase US exports and reduce the $63 billion trade deficit with Japan from 2024. Apparently, this is supposed to create hundreds of US jobs, particularly in manufacturing and agricultural, which would align with the efforts to revive US industry. Now, some of the ongoing negotiations that are part of this are things like steel and aluminum tariffs, which are currently at 50%, and those remain unresolved and are going to be subject to further discussions.

View 49 Comments

49 Comments

  4. @anthonyluc5981 on

    When you say their relationship is going to be tighter, I first though you meant tight as a tense relationship. However, it seems like you mean tight as in a closer better relationship.

  8. @Thenorthernchap on

    This deal is not renotely what it appears to be…. Japan has win this round big, which is crazy, because they didnt pick a fight.

    Nobody in Japan will buy US goods when superuor goods exist in the market.

    Japan pledged to be a bank for US development, but no firms want plants in the US because it is too expensive and unstable to manufacture within.

    This money, if sent, will likely be embezzled.

  31. @CríostóirOMachail on

    Well Japan under the dollar has been bankrupt for ages now so this is a handout to keep going and keep quiet and drag the dollar out a bit more.
    Bullshit basically to stall worldwide depression.

  32. @Echristoffe on

    American car in Japan.
    They really are dreaming … Japanese road are really narrow and big us car won’t work too much here. Plus the gaz is expensive …

  36. @Ididntdoit710 on

    Scary, if a democrat happens to get the presidential seat in the future and decides to not honor or go against a deal that Trump set up could lead to a war maybe on American soil?!?!

  38. @drakenrytder7655 on

    If you want to be educated 'currently' in GDP %'s going forward (that means – over any given time line) this is… got erased… finally got back here for an edit and I don't care anymore. I lied… I care.

  39. Anonymous on

    Sure, tight Japan roads & parking spaces gonna love US trucks & full-size SUVs 😂 also reliability… oh, I can totally see Japanese to prefer US made cars.

  49. @robertezell1916 on

    Oh an we need new, affordable, wait now and listen carefully again, Affordable new mini trucks! We talking $15k tops for a loaded one. That means one with AC and a good heater and a damn good stereo that will run interstate speeds, you know, 75 to 80 mph,,,,,,,and get 45 miles to a gallon doing it! BRING ON THEM MINI TRUCKS! 😂😂