US President Donald Trump has announced a major trade deal with Japan. Under this deal between these two big economies, the US will now impose a reciprocal tariff of 15 percent on Japanese products.
Giving information about this, Trump said that this tariff rate is 10 percent less than the tariff imposed earlier. According to Trump, this deal will create millions of jobs and this has never happened before.
Trump shared a post on the social media platform Truth Social to inform about the deal. He wrote, “Perhaps most importantly, Japan will open itself to trade including cars and trucks, rice and agricultural products, among others.” However, Japan will pay a reciprocal tariff of 15 percent to the US. According to the information, this new tariff rate will be implemented from August 1.
The US has announced the deal with Japan at a time when many countries of the world are trying to enter into trade agreements with it to avoid tariffs. Before the deal, the US had also announced heavy tariffs on Japan, but now this rate has been reduced considerably. Earlier this month, Trump wrote a letter to Japanese Prime Minister Shigeru Ishiba saying that the US would impose a 25 percent reciprocal tariff on Japan.