
Trump sets 15% tariff on Japanese imports as part of investment agreement
That rate is lower than the 24% that Trump threatened Japan with on April 2 and the 25% that he said he would hit Japanese imports with in a letter on July 7. Before Trump's current term, the effective U.S. tariff rate on Japanese imports was less than 2%, according to World Bank data.
Japan has been furiously attempting to avoid as much of a hit from Trump's global tariffs as possible. Japan's lead trade negotiator has visited the United States at least eight times, most recently on Sunday when he held a more than two-hour meeting with Commerce Secretary Howard Lutnick.
As part of the agreement, Trump said that Japan would "invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits." It was unclear how an investment of this type would work.
Trump touted the announcement at an event with congressional Republicans later Tuesday, saying that the tariffs 'kicked in better than anybody other than me and a few of the people in the room thought could happen."
Japan's Ministry of Foreign Affairs did not immediately respond to a request for comment about the details of the agreement.
Japan was the fifth highest source of U.S. imports in 2024, with American consumers and companies buying nearly $150 billion of goods from the country, according to Commerce Department data.
The talks with Japan came at a tough time politically for Japan's government. Prime Minister Shigeru Ishiba's ruling party recently lost both houses of parliament. Ishiba pledged to stay on as leader, in part to address economic headwinds.
Trump had recently downplayed the chances of an agreement with Japan.
"The Japanese are tough, but ultimately you have to understand we're just going to send a letter saying 'this is what you're going to pay, otherwise you don't have to do business with us'. But there's a chance," Trump said on June 16.
In May, Trump approved a long-delayed takeover of U.S. Steel by Japan's Nippon Steel. As part of that deal, Nippon agreed to create at least 70,000 jobs through a $14 billion investment, according to both companies and the White House. The companies later upped that to 100,000 jobs but clarified that those additions included "direct, indirect, and induced jobs."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Reuters
a few seconds ago
- Reuters
French minister Retailleau breaks with Macron as 2027 succession race heats up
PARIS, July 23 (Reuters) - French Interior Minister Bruno Retailleau delivered a stern rebuke of President Emmanuel Macron's political legacy in an interview published on Wednesday, breaking with his boss to stake his claim as his potential successor in the 2027 election. Less than two years before the end of Macron's second term, after which he can't immediately seek reelection, an increasingly crowded group of potential candidates to succeed the French leader is starting to emerge. Retailleau, a veteran conservative, has yet to declare his candidacy for 2027 but his comments to the right-wing Valeurs Actuelles magazine underline how likely presidential contenders are now trying to distance themselves from Macron's bruised political brand and carve out their own electoral niche. They also point to the fissures in France's weak minority government, a coalition of centrists and conservatives, that will likely widen as the presidential succession heats up. "Macronism will end with Emmanuel Macron, quite simply because it's neither a political movement nor an ideology: it essentially relies on one man," he was quoted as saying. A spokesperson for Macron declined to comment. Retailleau beat rivals in a leadership contest for the right-wing Republicans party in May, teeing him up for a potential presidential run. As the face of the government's push on rising drug crime and immigration, he has become one of France's most popular politicians. Retailleau has a 36% approval rating, according to a July Ipsos poll, compared with 24% for Macron. Retailleau's comments sparked a barrage of criticism from lawmakers in Macron's party. "Macronism is an ideology and a political party," Macron's former prime minister Elisabeth Borne, who hails from the left and is now education minister, posted on X. "Acting together requires mutual respect." Macron swept to power in 2017 at the head of his own movement which he said was "neither to the left nor the right". He implemented pro-European, pro-business policies once in power, but was seen as too pro-wealth for the left and not tough enough on crime and immigration for the right. As his popularity has fallen, his domination of the centre has pushed more French people to the political fringes. Marine Le Pen's far-right National Rally (RN) party is now the largest single parliamentary party, and she and her right-hand man Jordan Bardella lead many polls for the 2027 election. Retailleau said there would be a return to a clear left-right divide once Macron's term ends. A source close to Retailleau, speaking on condition of anonymity, said the minister's comments were to be expected in a coalition government and that he had no plans to resign. He was set to meet Macron on Thursday for a previously scheduled chat.


Scottish Sun
2 minutes ago
- Scottish Sun
Huge US Air Force planes touch down at Scots airport as Donald Trump visit looms
Pictures show the huge aircraft appearing to drop off some vehicles IN PLANE SIGHT Huge US Air Force planes touch down at Scots airport as Donald Trump visit looms HUGE US Air Force planes were spotted landing at a Scots airport ahead of Donald Trump's visit this week. The US President will visit both of his Scottish golf courses at Turnberry in Ayrshire and Menie in Aberdeenshire between July 25 and 29. 10 Huge military transport aircraft were spotted at Prestwick Airport Credit: John Kirkby 10 A UAE Air Force Boeing C-17A Globemaster III also touched down in Scotland Credit: John Kirkby 10 Two police vans parked up outside the airport Credit: John Kirkby 10 The planes appeared to be dropping off vehicles Credit: John Kirkby The President will also meet with Prime Minister Sir Keir Starmer and Scottish First Minister John Swinney during the five-day private visit. Mr Trump is set to touch down in Scotland on Friday. And three huge military transport aircraft have been spotted at Prestwick Airport today ahead of the President's arrival. Two Boeing C-17A Globemaster III planes from the US Air Force sat on the runway at the Ayrshire airport. Another one from the UAE Air Force sat ahead of them. Two police vans sat outside the airport, with streets alongside the site lined with 'no waiting' traffic cones. The planes appeared to be dropping off some vehicles before taking off again. Yesterday, we told how security measures were being ramped up by officers with road closures now put in place in and around Turnberry. Pictures show officers stopping cars and speaking to drivers outside the Ayrshire resort. Several 'road closed' signs have been placed on the road, as well as checkpoints for 'authorised access'. Police Scotland ramps up security for Donald Trump visit as officers unhappy with extra shift demands A new fence has also been put up alongside the resort on Maidens Road and the A77. A major policing operation is being put in place for both the visit and any protests that may spring up as a result of it. Chief Superintendent Rob Hay, president of the Association of Scottish Police Superintendents (Asps), said the visit of the US President would require a "significant operation across the country over many days" from Police Scotland. His comments come as Police Scotland is facing legal action from its own officers in a row over overtime payments and lieu ahead of Donald Trump's visit. However Scottish First Minister John Swinney has insisted policing will not be put in a "detrimental position" as a result of the visit. However, police officers are raising concerns about the impact of the trip, with Mr Hay stating: "The private visit of President Donald Trump to Scotland at the end of July will require the Police Service of Scotland to plan for and deliver a significant operation across the country over many days. 10 Three huge military aircraft sitting on the runway at Prestwick Credit: John Kirkby 10 After dropping off the vehicles the planes took off again Credit: John Kirkby 10 Roads around the airport have been coned off Credit: John Kirkby 10 A large crowd of people gathered around the aircraft as it dropped off vehicles Credit: John Kirkby "This will undoubtedly stretch all our resources from local policing divisions to specialist and support functions such as contact, command and control." Police superintendents and chief superintendents will have "key leadership roles" for the visit, he added, saying they would be taking responsibility for areas such as planning and resourcing, intelligence gathering, command and control communications, armed operations, public order, and other specialist functions. Mr Hay urged the public to be aware of the "significant demands that will be placed on policing services during this period" - adding these result from not only the Presidential visit but the "many popular events that Scotland hosts in the summer months, which bring thousands of tourists to our country and rely upon partnerships with policing to support their safe delivery". His comments came as SPF general secretary David Kennedy warned the police response to the visit could impact on the service it provides to the public in Scotland. Asked about the visit, Mr Kennedy told BBC Radio Scotland: "Anyone who says it won't affect it (policing in Scotland), I can't believe that's the case. "It will affect it. "You may be waiting in the past for so many hours for a police officer to arrive, that could double now, you may be waiting for more time for them to arrive. "Obviously, emergency calls will take priority, but it will affect communities in Scotland. "We've been asking long and weary to have more police officers in our communities in Scotland and all this does is take them away from that at this time." Asked if the quality of policing will be impacted by the visit, Mr Kennedy added: "It will be seriously affected, it has to be. "There's not enough police officers for it not to be affected." 10 The aircraft were spotted taking off and landing at Prestwick today Credit: John Kirkby


Reuters
3 minutes ago
- Reuters
Foreign demand for US Treasuries holds off bond vigilantes
ORLANDO, Florida, July 23 (Reuters) - So much for the bond vigilantes. The U.S. bond market has been remarkably calm lately, despite fears that inflation, tariffs, eroding Fed independence, and Washington's ballooning debt load will push up Treasury yields. What explains the resilience? The above concerns remain valid, of course, as any one of them could eventually cast a long shadow over the world's largest and most important market. But that doesn't seem to be on the immediate horizon. The so-called bond vigilantes - those investors determined to bring profligate governments into line by forcing up their borrowing costs - might have been driving bond prices lower earlier this year, but they are taking a back seat now. The 10-year Treasury yield on Tuesday closed at 4.34%. That's below the year-to-date average of 4.40%, and less than 10 basis points above the one- and two-year averages. Perhaps even more surprising, implied Treasury market volatility is hovering at its lowest levels in three-and-a-half years, further evidence that investors have little fear of an imminent spike in borrowing costs. The obvious explanation is that demand for Treasuries has picked up, investors lured back into the market by attractive yields on 10-year bonds approaching 5% and even juicer returns on 30-year paper. Concern about an economic slowdown, and thus lower interest rates, is likely adding fuel to this trend. A lot of this demand has likely come from overseas, based on the latest release of Treasury International Capital flows data. Admittedly, these figures are released with a lag, but they are among the most reliable and closely tracked of all international flows information. The TIC data show that the foreign official and private sectors bought a net $146.3 billion of U.S. Treasury notes and bonds in May on a non valuation-adjusted basis. That's the second-highest monthly total ever. And if you include corporate debt, agency bonds and equities, total foreign purchases of U.S. securities in May were the highest on record. Private sector investors accounted for roughly 80% of that total. Their holdings of U.S. Treasuries began to outstrip official holdings a few years ago, and that trend seems to be accelerating. They now hold over $5 trillion, compared to the official sector's $4 trillion. Bank of America's U.S. rates strategy team notes that outsized foreign private demand has also been evident in more recent flows data, particularly from Japanese investors who have bought more than $60 billion in overseas bonds since the start of May. Demand from private sector buyers like pension funds is generally thought to be more price-sensitive than reserve managers and sovereign wealth funds, who are more inclined to buy and hold for the very long term. Will the back end of the yield curve remain resilient? This will obviously depend in part on what happens in the U.S. economy. But there are a few exogenous factors that could boost demand moving forward, including potential regulatory changes to the U.S. banking system and the accelerated adoption of cryptocurrency stablecoins. First, the Fed has proposed revisions to the supplementary leverage ratio, which would free up capital for banks to hold more Treasuries. That could generate an estimated $1.1 trillion in extra buying capacity. Next, the increased use of stablecoins, digital tokens that are pegged 1:1 to highly liquid assets like T-bills, short-dated bonds or the U.S. dollar, could drive demand for shorter-dated Treasuries. The House of Representatives last week passed a bill to create a regulatory framework for stablecoins, and U.S. President Donald Trump is expected to sign it into law soon. Despite all this, there are still plenty of bond bears out there with good reasons to be bearish, not least the $1 trillion flood of new debt issuance expected before this year is out. But what the market action in the first half of this year has shown – filled as it has been with heightened uncertainty around tariffs, geopolitics, deficits and the Fed – is that bond market selloffs aren't likely to last long. That's partly because of the lack of a true alternative. The near-$30 trillion Treasury market is bigger than the Chinese, Japanese, French, UK and Italian government bond markets combined. And it is more than ten times bigger than the German Bund market, the euro zone's premium safe-haven asset. Underlying demand is stronger than the vigilantes have bargained for. (The opinions expressed here are those of the author, a columnist for Reuters)