EU and US could reach trade deal this weekend - Reuters
Investing.com -- President Donald Trump announced a landmark economic agreement with Japan on Tuesday, securing a $550 billion investment commitment and establishing a new trade framework between the two nations.
The deal, described as "the single largest foreign investment commitment ever secured by any country," will direct Japanese capital toward rebuilding American industrial capacity in strategic sectors including energy infrastructure, semiconductor manufacturing, critical minerals processing, pharmaceutical production, and shipbuilding.
Under the agreement, the United States will retain 90% of profits generated from these investments, which the White House says will create "hundreds of thousands of U.S. jobs" and strengthen domestic manufacturing capabilities.
The deal also implements a baseline 15% tariff rate on Japanese imports, which aims to narrow the U.S. trade deficit with Japan while generating revenue for the American government.
For American producers, the agreement removes longstanding market barriers in Japan. Agricultural provisions include an immediate 75% increase in U.S. rice imports to Japan and $8 billion in Japanese purchases of American agricultural goods such as corn, soybeans, and bioethanol.
Japan has also committed to purchasing 100 Boeing (NYSE:BA) aircraft and billions in U.S. defense equipment. Additionally, restrictions on American automobiles will be lifted, with U.S. automotive standards being approved in Japan "for the first time ever."
The agreement further includes expanded U.S. energy exports to Japan, with both countries exploring a new agreement for Alaskan liquefied natural gas.
The White House characterized the deal as "a strategic realignment" of U.S.-Japan economic relations that places "American industry, innovation, and labor at the center" of the relationship between the two allies.
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