US President Donald Trump on Tuesday announced a major trade agreement with Japan. Under this, Japan’s 15% tariffs will be imposed on exports to the US. According to CNBC news, tariffs on automobile products will also be reduced to this level. Trump described the agreement on his social media platform Truth Social Social as the biggest deal ever and said that Japan would invest $ 550 billion in the US, with a 90% profit to the US.
Agreement will create hundreds of thousands of jobs
According to the news, Trump said that Japan would open its country for business of many things including cars, trucks, rice and other agricultural products. President Trump said that this agreement will create hundreds of thousands of jobs. Japan’s big business -negotiator Ryosei Akajawa thanked all the people concerned by writing #Mmissionaccomplishe on X (East Twitter) soon after this announcement. Japanese Prime Minister Shigeru Ishiba said that the automobile tariff on Tokyo will be reduced from the current 25% to 15%, which is extremely important for Japan’s economy.
Japan’s total export to America
According to custom data, 28.3% of the total exports of Japan in 2024 is of auto products. By the way, Japan’s auto exports have declined by 26.7% in June, which continues after a 24.7% fall in May. From January to June, Japan’s total exports to the US were 10.3 trillion yen ($ 70.34 billion), which is 0.8% less than the previous year. Trump said in a speech after a post on Truth Social that Japan and America are also making an additional agreement, including liquidified natural gas (LNG). He told that we are going to have a deal with Europe tomorrow.
Tremendous boom in shares
After the news of the agreement, the Japanese market saw a boom, especially in the shares of automobile companies. Honda’s shares rose over 8%, Toyota climbed above 11%, Nissan jumped more than 8%, Majda Motor grew by more than 17% and Mitsubishi Motors increased by 13%. Jeremy Schwartz, Global CIO of Wisdomistry, said that the market had earlier shown a lot of negativity about the deal, which is now over. Trump is not only using such agreements to balance trade deficit, but is also promoting strategic investment, such as SoftBank, Openai and Oracle in the next four years in the next four years investment of about $ 500 billion in Artificial Intelligence Infrastructure.
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