Trump Inks 'Massive' Trade Deal With Japan, Setting Tariffs at 15%

Pact includes a Japanese investment package of $550 bn

- REUTERS

US President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of US-bound investment and loans.

It is the most significant of a clutch of agreements that Trump has bagged since unveiling sweeping global levies in April though, like other deals, exact details remained unclear.

As part of the deal, Japan will buy 100 Boeing planes and hike defense spending with US firms to $17 billion annually, from $14 billion, a White House official said.

Japan's auto sector, which accounts for more than a quarter of its US exports, will see existing tariffs cut to 15 per cent from levies totaling 27.5 per cent previously. Duties that were due to come into effect on other Japanese goods from August 1 will also be cut to 15 per cent from 25 per cent.

US Treasury Secretary Scott Bessent said in an interview with Bloomberg Television that Japan received the 15 per cent rate on auto tariffs "because they were willing to provide this innovative financing mechanism" that he did not think other countries could replicate.