General
On Tuesday, President Donald Trump announced a new trade framework with Japan, imposing a 15% tariff on Japanese imports. Posting on Truth Social, Trump claimed the agreement would generate “hundreds of thousands of jobs” and emphasized the strong ties between the U.S. and Japan. He also stated that Japan would invest $550 billion into the U.S. economy and grant greater market access to American cars and rice.
This new 15% tariff marks a reduction from the previously threatened 25% rate, as detailed in a letter Trump recently sent to Japanese Prime Minister Shigeru Ishiba. In response, Ishiba welcomed the deal on Wednesday, highlighting its mutual benefits and potential for cooperation. While the announcement reinforces Trump’s image as a master negotiator, specific aspects — such as the fate of tariffs on Japanese-made vehicles — remain unclear. The earlier tariff announcement in April had triggered market turbulence and economic concerns, which now appear to be easing.