Trump announces 'massive' Japan trade deal including 15% tariff
The two countries have been locked in negotiations for months since Trump launched his global trade offensive, with levies targeting steel and automobiles -- both important Japanese exports -- seen as particular sticking points.
Trump had previously threatened Japan, a major US trading partner, with a tariff of 25 percent beginning August 1 if a deal was not reached.
"We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump announced on his Truth Social platform.
He said that under the deal, "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits."
He did not provide further details on the unusual investment plan, but claimed the deal "will create Hundreds of Thousands of Jobs."
Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting.
"As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement," Ishiba told reporters in Tokyo after Trump's announcement in Washington.
- Rice imports? -
Japan has agreed to "open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things," Trump said.
Rice imports are a sensitive issue in Japan, and Ishiba's government had previously ruled out any concessions on the topic.
Japan's Nikkei index bounced over one percent on news of the deal, with Japanese auto stocks rising six percent.
The deal comes after Ishiba faced a bruising weekend election that left his coalition without a majority in the upper house.
Trump has been under pressure to wrap up trade pacts after promising a flurry of deals ahead of his August 1 tariff deadline.
Earlier on Tuesday, he announced a deal had been reached with the Philippines which would see the country face 19 percent tariffs on its exports.
The White House also laid out details of a deal with Indonesia, which would see it ease critical mineral export restrictions and also face a 19 percent tariff.
Similar agreements have been struck with the United Kingdom and Vietnam, while negotiations are ongoing with the top three largest US trading partners, China, Canada and Mexico.
After an escalatory tit-for-tat with Beijing, the two major economies agreed to a temporary lowering of tariffs, with another round of negotiations expected next week in Stockholm.
Since returning to the White House in January, Trump has imposed a sweeping 10 percent tariff on allies and competitors alike, alongside steeper levels on steel, aluminum and autos.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
10 hours ago
- Bangkok Post
Thai-Cambodia border shelling continues despite Trump's ceasefire call
SISAKET/PHNOM PENH - Cambodia and Thailand each said the other had launched artillery attacks across contested border areas early on Sunday, hours after US President Donald Trump said the leaders of both countries had agreed to work on a ceasefire. Cambodia said it fully endorsed Trump's call for an immediate ceasefire. Thailand said while it was grateful to the US President, it could not begin talks while Cambodia was targeting its civilians, a claim that Phnom Penh has denied. "Our condition is that we do not want a third country but are thankful for his (Trump's) concern," Thailand's acting Prime Minister Phumtham Wechayachai told reporters before heading off to visit border areas. "We've proposed a bilateral between our foreign ministers to conclude the conditions for a ceasefire and drawing back troops and long-range weapons." Cambodia said Thailand had started hostilities on Sunday morning and that Thai forces were mobilising along the border. Thailand said it had responded to attacks from Cambodia. "I made it clear to Honourable President Donald Trump that Cambodia agreed with the proposal for an immediate and unconditional ceasefire between the two armed forces," Cambodian Prime Minister Hun Manet posted on Facebook, noting he had also agreed to Malaysia's earlier ceasefire proposal. Citizens want peace Four days after the worst fighting in more than a decade broke out between the Southeast Asian neighbours, the death toll stood above 30, including 13 civilians in Thailand and eight in Cambodia. More than 200,000 people have been evacuated from border areas in the two countries, authorities said. Cambodia's Defence Ministry said Thailand had shelled and launched ground assaults on Sunday morning at a number of points along the border. The ministry's spokesperson said heavy artillery was fired at historic temple complexes. "For me, I think it is great if Thailand agreed to stop fighting so both countries can live with peace," Phnom Penh university student Sreung Nita told Reuters. The Thai army said Cambodian forces had fired shots into several areas, including near civilian homes, early on Sunday, and were mobilising long-range rocket launchers. The governor of Surin told Reuters artillery shells had been fired into the province. "The soldiers will continue to do their job at full steam - so Thais do not worry - until the government has reached a clear agreement that there is no danger for the people and to ensure we maintain the country's interests in order to bring the peace we want to see," Mr Phumtham said. In the Thai province of Sisaket, Reuters reporters heard shelling throughout Sunday and said it was unclear which side of the border it was on. "If there is a ceasefire, things will be better," Sisaket resident Thavorn Toosawan told Reuters. "It's great that America is insisting on the ceasefire because it would bring peace." Trump speaks to both leaders Trump said on Saturday that he had spoken with the prime ministers of Thailand and Cambodia and they had agreed to meet immediately to quickly work out a ceasefire to end fighting that began on Thursday. Bangkok and Phnom Penh each say the other started the hostilities last week. "Both Parties are looking for an immediate Ceasefire and Peace," Trump wrote on social media, adding tariff negotiations with both countries were on hold until the fighting stopped. The countries have faced off since the killing of a Cambodian soldier late in May during a brief skirmish. Troops on both sides of the border were reinforced amid a full-blown diplomatic crisis that brought Thailand's fragile coalition government to the brink of collapse. Thailand and Cambodia have bickered for decades over undemarcated points along their 817-km (508-mile) land border, with ownership of the ancient Hindu temples Ta Moan Thom and the 11th century Preah Vihear central to the disputes. Preah Vihear was awarded to Cambodia by the International Court of Justice in 1962, but tension escalated in 2008 after Cambodia attempted to list it as a Unesco World Heritage site, and skirmishes over several years brought at least a dozen deaths. Cambodia said in June it had asked the world court to resolve its disputes with Thailand, which says it has never recognised the court's jurisdiction and prefers a bilateral approach.
Bangkok Post
13 hours ago
- Bangkok Post
Thailand, Cambodia clash despite ceasefire hopes
SAMRAONG (CAMBODIA) - Thailand and Cambodia clashed for a fourth day Sunday, despite both sides saying they were ready to discuss a ceasefire after a late-night intervention by US President Donald Trump. The neighbours, popular destinations for millions of foreign tourists, have been locked in their bloodiest conflict in years over their disputed border, with at least 33 people confirmed killed and more than 200,000 displaced. Both said they were willing to start talks to end the fighting, after Trump spoke to the two prime ministers late on Saturday and said they had agreed to meet and "quickly work out" a ceasefire. But fresh artillery clashes erupted on Sunday morning near two long-contested ancient temples in the frontier region between northern Cambodia and northeast Thailand that has seen the bulk of the fighting. Cambodian defence ministry spokeswoman Maly Socheata said Thai forces began attacking areas around the temples at 4.50am. The regular thump of artillery rattled windows in the Cambodian town of Samraong, around 20 kilometres (12 miles) from the frontline, AFP journalists said. Thai Army Deputy Spokesman Ritcha Suksuwanon said Cambodian forces began firing artillery around 4:00 am as the two sides battled for control of strategic positions. - Ceasefire calls - Cambodian Prime Minister Hun Manet on Sunday said his country "agreed with the proposal for an immediate and unconditional ceasefire between the two armed forces". He said his Foreign Minister Prak Sokhonn will talk to US Secretary of State Marco Rubio to coordinate with the Thais, but warned Bangkok against reneging on any agreement. Earlier, after Trump's call, Thailand's acting Prime Minister Phumtham Wechayachai said he had agreed in principle to entering a ceasefire and starting talks "as soon as possible". But he warned that Cambodia must show "sincere intention" to bring about peace. A long-running border dispute erupted into combat this week with jets, tanks and ground troops battling in the rural border region, marked by a ridge of hills surrounded by wild jungle and agricultural land where locals farm rubber and rice. Thailand says seven of its soldiers and 13 civilians have been killed, while Cambodia has confirmed eight civilian deaths and five military. The conflict has forced more than 138,000 people to be evacuated from Thailand's border regions, and 80,000 have been driven from their homes in Cambodia. After an urgent United Nations Security Council meeting Friday in New York, Cambodia's UN Ambassador Chhea Keo said his country wanted "an immediate ceasefire" and a peaceful resolution of the dispute. UN chief Antonio Guterres urged both sides Saturday to "immediately agree to a ceasefire" and hold talks to find a lasting solution. "The Secretary-General condemns the tragic and unnecessary loss of lives, injuries to civilians and the damage to homes and infrastructure on both sides," his deputy spokesman Farhan Haq said in a statement. Both sides have blamed the other for firing first. Cambodia has also accused Thai forces of using cluster munitions, while Thailand accused Cambodia of targeting civilian infrastructure, including a hospital hit by shells. The fighting marks a dramatic escalation in a long-running dispute between the neighbours over their shared 800-kilometre border where dozens of kilometres are contested.
Bangkok Post
14 hours ago
- Bangkok Post
US Fed poised to hold off on rate cuts, defying Trump pressure
WASHINGTON - The US central bank is widely expected to hold off slashing interest rates again at its upcoming meeting, as officials gather under the cloud of an intensifying pressure campaign by President Donald Trump. Policymakers at the independent Federal Reserve have kept the benchmark lending rate steady since the start of the year as they monitor how Trump's sweeping tariffs are impacting the world's biggest economy. With Trump's on-again, off-again tariff approach -- and the levies' lagged effects on inflation -- Fed officials want to see economic data from this summer to gauge how prices are being affected. When mulling changes to interest rates, the central bank -- which meets on Tuesday and Wednesday -- seeks a balance between reining in inflation and the health of the jobs market. But the bank's data-dependent approach has enraged the Republican president, who has repeatedly criticised Fed Chair Jerome Powell for not slashing rates further, calling him a "numbskull" and "moron". Most recently, Trump signalled he could use the Fed's $2.5 billion renovation project as an avenue to oust Powell, before backing off and saying that would be unlikely. Trump visited the Fed construction site on Thursday, making a tense appearance with Powell in which the Fed chair disputed Trump's characterisation of the total cost of the refurbishment in front of the cameras. But economists expect the Fed to look past the political pressure at its policy meeting. "We're just now beginning to see the evidence of tariffs' impact on inflation," said Ryan Sweet, chief US economist at Oxford Economics. "We're going to see it (too) in July and August, and we think that's going to give the Fed reason to remain on the sidelines," he told AFP. - 'Trial balloon' - Since returning to the presidency in January, Trump has imposed a 10% tariff on goods from almost all countries, as well as steeper rates on steel, aluminum and autos. The effect on inflation has so far been limited, prompting the US leader to use this as grounds for calling for interest rates to be lowered by three percentage points. Currently, the benchmark lending rate stands at a range between 4.25% and 4.50%. Trump also argues that lower rates would save the government money on interest payments, and floated the idea of firing Powell. The comments roiled financial markets. "Powell can see that the administration floated this trial balloon" of ousting him before walking it back on the market's reaction, Sweet said. "It showed that markets value an independent central bank," the Oxford Economics analyst added, anticipating Powell will instead be more influenced by labour market concerns. Powell's term as Fed chair ends in May 2026. - Jobs market 'fissures' - Analysts expect to see a couple of members break ranks if the Fed's rate-setting committee decides for a fifth straight meeting to keep interest rates unchanged. Sweet cautioned that some observers may spin dissents as pushback on Powell but argued this is not necessarily the case. "It's not out-of-line or unusual to see, at times when there's a high degree of uncertainty, or maybe a turning point in policy, that you get one or two people dissenting," said Nationwide chief economist Kathy Bostjancic. Fed Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman have both signalled openness to rate cuts as early as July, meaning their disagreement with a decision to hold rates steady would not surprise markets. Bostjancic said that too many dissents could be "eyebrow-raising," and lead some to question if Powell is losing control of the board, but added: "I don't anticipate that to be the case." For Sweet, "the big wild card is the labour market". There has been weakness in the private sector, while the hiring rate has been below average and the number of permanent job losers is rising. "There are some fissures in the labor market, but they haven't turned into fault lines yet," Sweet said. If the labour market suddenly weakened, he said he would expect the Fed to start cutting interest rates sooner.
