U.S. Agrees Trade Deal with Japan
- Ben Bradford
- Jul 23
- 1 min read
Overnight, it was announced that the U.S. and Japan have agreed on a deal in advance of the latest 1st August deadline. This latest deadline was set out in a letter sent earlier in July, which stated that Japanese goods would be subjected to a 25% when imported into America.
The full text of the agreement is yet to be released however, here is a breakdown of what we know to date:
Japanese goods will be subjected to a 15% tariff rate. This is lower than the 25% which was threatened, but higher than the 10% the UK agreed. On the tariff rate, Japan’s Prime Minister stated that it was “the lowest figure to date among countries with trade surplus with the U.S.”
Unlike the UK-U.S. agreement, Japanese car manufacturers are not subject to a quota. It is reported that a quarter of all Japanese exports to the U.S. are cars
The President announced on his Truth Platform that Japan have agreed to invest $550bn into the United States
U.S. producers of cars, trucks, rice and “certain agricultural products” will have better access to the U.S. market
Japan is the fifth largest U.S. trading partner in goods, and this agreement adds to those already agreed upon with the UK, Vietnam and, partially, with China. Reports state that negotiators from the EU are due to attend the White House today (23rd July).
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