Trump announces trade deal with Japan

Trump announces trade deal with Japan

Overnight, with less than two weeks before the White House’s August 1st deadline for tariffs to take effect, President Trump announcing what he says is a massive trade deal with Japan, America’s fifth largest trading partner. They just signed the largest trade deal in history. I think maybe the largest deal in history with Japan. The president posting on social media that Japanese exports to the US will now face a 15% tariff, down from the 25% he previously threatened if Japan didn’t make a deal with the US. That new 15% tariff extending to Japanese autos, putting them at a competitive advantage to other car makers who still face Trump’s steeper 25% tariffs. In exchange, Japan agreeing to allow American automakers to sell their cars and trucks in Japan and opening up the country to imports of US grown rice and other agricultural products. The president also announcing that Japan will make $550 billion in investments in the US, but he didn’t provide details. Last year, the US bought nearly $150 billion worth of Japanese goods, more than onethird of those cars and car parts. Now, the Japanese this morning are lauding this as a win-win, but a 15% tariff is still significant, higher than it was before Trump took office. The bottom line here, Americans could still face higher prices on products imported from Japan. Everything from cars to electronics.

ABC News’ Chief White House Correspondent Mary Bruce has the details on Japan’s $550 billion investment in the U.S. and what it means for the auto industry.

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