International

Trump Announces 15% Tariff Deal with Japan

US President Donald Trump has announced a major trade agreement with Japan, confirming a 15% tariff on imports from the country. This move replaces an earlier proposed 25% tariff and is part of a broader effort to reset trade relations with key partners. The deal, which Trump described as “possibly the biggest ever,” is aimed at increasing American exports while encouraging investment from Japan.

As part of the deal, Japan has committed to investing approximately USD 550 billion in the United States. The agreement also opens up Japan’s market for key American exports such as automobiles, rice, and other agricultural products, a longstanding demand from US trade negotiators.

The announcement has had an immediate impact on financial markets. Japan’s Nikkei index jumped over 3% following the news, and shares of major Japanese automakers including Toyota and Mazda surged in early trading. South Korean carmakers Hyundai and Kia also saw their stocks rise, amid speculation that Seoul might now pursue a similar deal to avoid future tariffs.

South Korea is now facing pressure to negotiate its own trade arrangement with Washington before the August 1 deadline set for global tariff realignments. Officials in Seoul are reportedly preparing for discussions with the United States in the coming days.

This move signals a broader shift in the US administration’s trade strategy toward reciprocal tariffs, where trading partners face levies matching the duties they impose on American goods. The deal with Japan is seen as the first major test case in this new approach, and other countries may soon follow suit in order to secure favorable terms.

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