Another trade deal with the United States was announced by President Donald Trump on Tuesday, calling it the “biggest deal in history” between the US and Japan.
The deal will see $550 billion in investment from Tokyo to the US, with the country set to receive up to 90% of the profits from the investment. In return, Washington will impose a 15% retaliatory tariff on Japanese imports.
Trump also said Japan would open its market to a range of key sectors including automotive, trucks, rice and other agricultural products that could potentially create hundreds of thousands of jobs for Americans.
However, no further details were provided on how the investment would be implemented or how the profits would be distributed.
The deal was finalized after months of tense negotiations that involved sensitive issues such as car exports and restrictions on American rice.
It is also seen as an important compromise after Trump previously threatened to impose tariffs as high as 25% on Japanese goods, which are now being withdrawn, providing relief to Tokyo, the largest holder of $1.1 trillion in US Treasury bonds.
The move is also in line with the Trump administration's aggressive strategy of continuing to pressure allies to reduce trade dependence on China, as part of the conditions for negotiations with the US.
