Washington: U.S. President Donald Trump announced that his administration will impose 15 percent "reciprocal" tariffs on Japanese goods as part of a new trade agreement with Japan, marking a reduction of 10 percentage points from the previously stated rate. This announcement was made through a social media post, where Trump highlighted the significance of the trade deal with Japan, calling it "massive."
According to Yonhap News Agency, the new tariffs are set to be implemented on August 1, unless countries manage to finalize trade deals with the United States. The announcement comes amidst ongoing negotiations with other nations like South Korea, which are also seeking to establish trade agreements to avoid the planned tariffs.
Trump emphasized that the deal would open Japan's market to U.S. products, including automobiles, rice, and certain agricultural goods. He stated that Japan will pay reciprocal tariffs of 15 percent to the United States, highlighting the mutual benefits of the trade agreement.
In a letter to Japanese Prime Minister Shigeru Ishiba earlier this month, Trump initially proposed a 25 percent reciprocal tariff rate, aligning it with the rate suggested for South Korea. However, the finalized agreement with Japan reflects a lower tariff rate.
The President described the agreement with Japan as potentially the largest trade deal ever made. He noted that Japan has committed to investing US$550 billion in the U.S., with the United States expected to receive 90 percent of the profits from this investment, though further details on the investment plan were not provided.
Additionally, on the same day, Trump announced a trade agreement with the Philippines, under which the Southeast Asian country will pay 19 percent tariffs, slightly lower than previously indicated.