Washington: U.S. President Donald Trump declared on Tuesday that his administration will impose 15 percent "reciprocal" tariffs on Japanese products, a reduction from the previously announced 25 percent. The announcement comes as Trump promotes a "massive" trade agreement with Japan, a key ally in Asia.
According to Yonhap News Agency, Trump shared this update through a post on social media, amidst ongoing efforts by South Korea and other nations to negotiate trade agreements with the United States. These countries aim to avoid or mitigate the substantial tariffs that the U.S. plans to enact starting August 1, unless trade agreements are secured.
Trump highlighted the significance of the deal, stating, "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%." This announcement followed a letter Trump sent earlier this month to Japanese Prime Minister Shigeru Ishiba, in which he initially proposed a 25 percent tariff.
Describing the trade agreement with Japan as "perhaps the largest" ever made, Trump pointed out Japan's commitment to a US$550 billion investment in the United States. He claimed that the U.S. would reap 90 percent of the profits from this investment, although he provided no further details about the plan. "This Deal will create Hundreds of Thousands of Jobs -- There has never been anything like it," Trump asserted.
The negotiations between Washington and Tokyo had faced challenges, especially with Japan's government being in a tight spot due to upcoming parliamentary elections. Last week, Trump suggested that his administration might adhere strictly to the 25 percent tariff rate for Japan, indicating the complexities involved in the negotiations.
In parallel trade talks, South Korea is seeking exemptions or relief from the reciprocal tariffs, in addition to specific duties on steel, aluminum, and automobiles, all of which could significantly affect Korea's export-driven economy.
Additionally, Trump announced a trade deal with the Philippines earlier in the day, revealing that the country will be subjected to 19 percent tariffs, slightly less than the previously stated rate.