Trade: Trump announces a “huge” agreement with Japan

Donald Trump announced the conclusion of a “huge” trade agreement with Japan, China confirming on Wednesday that it will send its Deputy Prime Minister to crucial Sino-American discussions next week in Sweden.

The American president intends to impose from August 1 of massive so -called trade: trump announces “huge” agreement “reciprocal” surchards, initially scheduled for April 1 and then suspended, in many countries – unless they conclude by then agreements with the United States.

The Trump administration now claims five of these agreements to its credit: in addition to Japan. Furthermore, the American president announced on Tuesday that he had concluded one with the Philippines. Furthermore, The United States also ensured that they had agreed with the United Kingdom, Indonesia and Vietnam.

Chinese. Meanwhile, American will meet next week in the Swedish capital, Stockholm, for a third cycle of discussion on customs duties.
China announced Wednesday that its Deputy Prime Minister He Lifeng. Similarly, in charge of economic issues, will go to these negotiations, that it hopes based on “the principles of mutual respect, peaceful coexistence and win-win cooperation”.

The agreement with Japan, one of the main world economies, represents a success for Donald Trump. Furthermore, The American president described it trade: trump announces “huge” agreement on Tuesday on his social social platform as “unprecedented”.

“Japan will pay reciprocal customs duties of 15% in the United States. ” he said, below the 25% surcharge, the archipelago of which was threatened on August 1.
Japan. although the United States-key ally, is currently subject to the same basic customs duties of 10% as most nations, as well as to 25% surcharges on cars and 50% on steel and aluminum.

The agreement will bring customs duties to the automobile at 15%, as on the rest of the products.

“It is a slightly different agreement but because the Japanese have proposed a very innovative solution. by providing funding, guarantees and mortgage credit to major projects here in the United States,” said Bessent on Tuesday on Bloomberg TV, “it is this innovative financing which allows them to offer them 15%” even on the automobile.
Donald Trump assured that this agreement will bring “$ 550 billion” in trade: trump announces “huge” agreement investments in the country, without further details.

Rice. cars

“We believe that it is a great success to have been able to obtain the greatest reduction (from surcharge) among countries with a trade surplus with the United States,” said Japanese Prime Minister Shigeru Ishiba.

According to Mr. Trump. Japan has agreed to open up “to the trade in cars and pick-ups, rice and a number of other agricultural products” from the United States.

On the automobile which represents 8% of jobs in the archipelago. the stakes were high: it constituted almost 30% of Japan exports last year to the United States.
However, following the 25% surcharge imposed since April, these exports have plummeted a quarter over a year in May and June.
According to Ishiba, the agreement concluded provides that these surcharges are divided by two, and are added to the 2.5% preexisting customs duties to achieve final taxation of 15%.

In addition. inflating trade: trump announces “huge” agreement imports of rice was in recent months a taboo for Tokyo, who ensured defending the interests of local farmers.

“Europe will come tomorrow”

“We continued the negotiations to achieve an agreement responding to the national interest of Japan. the United States” and “nothing imposes sacrifices on our farmers,” I ishiba said on Wednesday.

Japan currently imports up to 770. 000 tonnes of rice exempt from customs duties and could import more American cereals in this limit -to the detriment of other origins -he explained.

On the other hand. the American surcharge of 50% on steel and aluminum are not affected by the agreement, no more than the defense expenses of Japan which Mr. Trump claims the strengthening, said Ryosei Akazawa.

And Mr. Trump detailed on Tuesday the conditions for a framework agreement concluded with Jakarta. paving the way for a final agreement still to be built.

“Europe will come tomorrow and. trade: trump announces “huge” agreement the next day, we have others who come from it,” even assured Donald Trump on Tuesday in front of republican senators.
Trump threatened customs duties of 30% on all imports from the EU from August 1.