Trump says US has Agreed to Trade Deal with Japan

President Donald Trump says the US has agreed to a massive trade deal with Japan, one of the country’s largest trading partners.

Japan has agreed to invest US$550 billion in the US while its goods sold to America would be taxed at 15 per cent when they reach the country – below the 25 per cent tariff Trump had threatened.

Trump said on social media that Japan would open its economy to US goods, including cars, trucks, rice and certain agricultural products.

Japan’s Prime Minister Shigeru Ishiba welcomed the announcement, saying it was the lowest figure to date among countries with trade surpluses with the US.

Ishiba said on Wednesday the agreement would mean US tariffs on vehicles and parts would be cut to 15 per cent from 25 per cent.

However, the tax is above the 10 per cent Trump levied on Japan and other countries when he suspended higher so-called reciprocal tariffs between April and July.

A quarter of Japan’s US exports are from its critical automotive sector, which accounts for almost 3 per cent of its economy.