President Donald Trump has announced new tariffs on Japanese goods, but the final deal looks very different from what he first proposed. Originally, he threatened a 25% tariff on goods from Japan. However, after talks between the two countries, the tariff has been lowered to 15%, and Japan has agreed to invest $550 billion in the United States.
Japanese Prime Minister Shigeru Ishiba said this is the lowest tariff level among countries that have trade surpluses with the US. Trump claimed this is the biggest trade deal ever made, calling it a win for both countries.
About a quarter of Japan’s exports to the US are cars, and while not all the details are clear, reports say US tariffs on Japanese vehicles will also drop to 15%.
After the announcement, many people online questioned the accuracy of Trump’s numbers. On Reddit, several users said the $550 billion figure sounded completely made up. One person asked if it was over one year or more, while another said, even with 15 years of experience in global trade, they had no idea what Trump meant.
UNILAD has asked the White House for clarification.
This news comes as Trump’s August 1 tariff deadline approaches. He also announced a 19% tariff on goods from the Philippines, while saying American products sold there will face no tariffs at all. Trump claimed the Philippines has now opened its market to the US.
He also said Europe is next in line for trade talks, suggesting new deals may be coming soon. On his social media platform Truth Social, Trump criticized the European Union and Mexico for long-standing trade imbalances and unfair tariffs. In a letter to the EU, he said the US needs to move away from these “one-sided” trade relationships.
In response, a European Commission spokesperson said that discussions with the US are ongoing, and the EU is focused on reaching a fair agreement.
