WASHINGTON: US President Donald Trump on Tuesday (Jul 22) announced a trade deal with Japan that he said will result in Japan investing US$550 billion into the United States and paying a 15 per cent reciprocal tariff.
Trump had earlier this month said that the US would impose 25 per cent tariffs on Japan from Aug 1.
Japanese Prime Minister Shigeru Ishiba said he needed to examine the details of the trade deal.
In a post on Truth Social, Trump added that Japan will open to trade for cars, trucks, rice and certain agricultural products, among other items.
“We just completed a massive deal with Japan, perhaps the largest deal ever made,” he said.
“Japan will invest, at my direction, US$550 billion dollars into the United States, which will receive 90 per cent of the profits,” Trump added.
“This deal will create hundreds of thousands of jobs – There has never been anything like it,” he said.
“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.”
Japanese auto stocks surged after Trump’s announcement, with the overall Nikkei 225 index of stocks gaining more than 1 per cent.
Toyota shares were up almost 10 per cent, Nissan by 6.5 per cent and Honda 8.15 per cent.
