US President Donald Trump announced on Tuesday that America has finalised a trade agreement with Japan, which includes a 15 percent American tariff on Japanese imports and a $550 billion investment plan.Earlier, Trump had warned Japan about implementing a 25 percent tariff starting August 1 if negotiations failed. “We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Trump posted on his Truth Social platform.According to his statement, the agreement stipulates that “Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits.”Without elaborating on this unconventional investment arrangement, he stated the agreement “will create Hundreds of Thousands of Jobs.” “Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” he added.Soon after the announcement, Japan’s PM reacted saying that he “needs to examine details of US trade deal”, reported AFP.Also read: Trump says Philippines talks ‘concluded’; Manila to pay 19% tariffAlso read: US, Indonesia sign trade deal- Trump calls it ‘huge win’; mineral access, Boeing deal for AmericaThe announcement coincides with Japanese Prime Minister Shigeru Ishiba’s challenging weekend election, where his coalition lost its majority in the upper house.Trump has faced increasing pressure to conclude trade agreements before his August 1 tariff deadline, having promised numerous deals. This Japanese agreement follows recent trade deals secured with the Philippines and Indonesia. Trump announced a trade framework with the Philippines that imposed a 19% tariff on its goods, while American-made products faced no import taxes. The President also reaffirmed his 19% tariffs on Indonesia.
