US President Donald Trump on Tuesday (Jul 22) declared that Washington had reached a “massive” new trade agreement with Japan, a deal he claimed would bring billions in investments and create “hundreds of thousands of jobs” in the United States. Even as Trump, in his usual ‘go big, or go home’ fashion, touts what he referred to as ‘perhaps the largest deal ever made,’ Tokyo has signalled caution. In a statement, Japanese Prime Minister Shigeru Ishiba said he would review the details before offering any official comment. “As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement,” Ishiba told reporters in Tokyo after Trump’s announcement.
‘Largest Deal’ between US and Japan
Trump, writing on his Truth Social platform, said the deal would include a 15 per cent tariff on Japanese exports and claimed that Japan had agreed to invest $550 billion into the US economy. “We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Trump wrote, adding that under the deal “Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits,” though he did not provide specifics.
The announcement comes after months of tense negotiations between the two countries, particularly over automobiles and steel, both important Japanese exports, reports AFP.
Japan, Rice imports and market reaction
Trump said that Japan has agreed to “open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things.” Japan had previously resisted pressure to make concessions on rice imports, a politically sensitive issue in the nation.
Following Trump’s announcement, Japan’s Nikkei index rose over 1 per cent, with automotive stocks surging more than 6 per cent.
AloJapan.com