The US and Japan have concluded a commercial agreement of $ 550 billion. Trump: “There has never been such a thing again.”

The United States and Japan have concluded an agreement to reduce the harsh customs tariffs that President Donald Trump has threatened to impose on goods from his Asian ally, the current understanding including a US investment package and Japanese loans worth $ 550 billion.

The agreement will immediately help the Japanese car sector, which is in a heavy situation, the existing rates being reduced from 25% to 15%. The taxes proposed for other Japanese products, which were to enter into force on August 1, were reduced to the same level.

Motor vehicles are more than a quarter of the total Japan exports to the United States.

“I just ended a huge understanding with Japan, probably the biggest understanding ever over,” Trump wrote on his social social platform. “Japan will invest, at my guidance, $ 550 billion in the United States, which will receive 90% of profits. This agreement will create hundreds of thousands of jobs – there has never been such a thing,” he added.

A package of $ 550 billion

Prime Minister Ishiba, who, according to the Japanese press, will resign soon after the painful election defeat on Sunday, has greeted the agreement as having “the smallest percentage of the countries that have a commercial surplus.”

The US investment package includes loans and guarantees from institutions affiliated with the Japanese government worth up to $ 550 billion to allow Japanese companies to “build resistant supply chains such as pharmaceutics and semiconductors,” said Ishiba.

Japan will also increase purchases of agricultural products, such as American rice, said a Trump administration official. Ishiba said that the share of American rice imports could grow in the current, but that the agreement “will not sacrifice Japanese agriculture.”

Enthusiasm on the actions of Asian car manufacturers

The announcement triggered an increase in Japanese actions, the Nikkei reference index climbing by 2.6% to the highest level of the last year. The actions of the car manufacturers registered a significant increase, Toyota growing by over 11%, and Honda and Nissan by over 8%.

The enthusiasm also extended to the actions of South Korean car producers, as the agreement with Japan has fueled optimism that South Korea could conclude a similar agreement. The yen was easily appreciated against the dollar, while the European and American stock exchange indices have registered a slight increase.

However, American car producers expressed their dissatisfaction with the agreement, being worried about a commercial regime that could reduce tariffs for car imports from Japan to 15%, leaving the tariffs for imports from Canada and Mexico to 25%.

“Any agreement that requires a lower tariff for Japanese imports, which practically contain American components, except the fare imposed on vehicles in North America, which contains a high percentage of American components, is an unfavorable agreement for the American industry and for workers in the American automotive industry,” said Matt Blunt, who drives the American Policy Council. Chrysler's parent company.