Washington (AP) – President Donald Trump on Tuesday announced a trade structure with Japan, which levied 15 percent tax on goods imported from the nation.
Trump posted on the truth social, “This deal will create hundreds of thousands of jobs – nothing has happened,” saying that the United States will always continue to have a great relationship with the country. ,
The President said that Japan would invest $ 550 billion in the US “in my direction” and “open” its economy for American auto and rice. There is a meaningful fall on imported Japanese goods at a rate of 15 percent tax 25 percent, which Trump recently said in a letter to Japanese Prime Minister Shigeru Ishiba that it would be started from 1 August.
With the announcement, Trump is trying to avoid his ability as a dealmaker – even as his tariff, when initially announced in early April A market led to nervousness And the possibility of slow growth which is currently reduced. The major details were unclear from his post, such as the Japanese-made auto would face 25 percent more tariffs that Trump was planted in the region.
But Framework fit a growing pattern for Trump, eager to portray tariffs as his administration to win for Americans says that revenue will help reduce budget shortage and more factory will move to the US to avoid import taxes and lead to business imbalances to disappear.
But the tariff wave remains a source of uncertainty about whether it can give rise to high prices for consumers and businesses if companies just pass with costs. The problem was rapidly seen on Tuesday after General Motors recorded a 35 percent decline in its net income during the second quarter as it warns that tariffs would hit their business in the next months, which would make its stock tumble.
As the August 1 time frame for tariff rates in their letters for world leaders, Trump is also coming. Announced a trade structure with the Philippines It will impose 19 percent tariff on its goods, while American-made products will not have to face any import tax. The President confirmed its 19% tariff on Indonesia.
According to the Census Bureau, the US had imbalance $ 69.4 billion on goods with Japan last year.
The US had a $ 17.9 billion trade imbalance with Indonesia and a $ 4.9 billion imbalance with the Philippines. Both nations are less rich than the US and an imbalance means that the US imports more than countries that export them.
The President is ready to implement the comprehensive tariffs listed in his recent letters to other world leaders on August 1, raising the question whether there will be any success in a conversation with the European Union. In Tuesday’s dinner, Trump said that the European Union will be held in Washington for trade talks on Wednesday.
Trump told the guests, “We are coming to Europe the next day.”
The President sent a letter earlier this month in which 27 member states in the European Union were threatened with 30% taxes on their goods, which was started from 1 August.
The Trump administration has a separate dialogue period with China that is currently scheduled to run through August 12. The goods of that nation are taxed at an additional 30% base line.
Treasury Secretary Scott Besant said that he would be in the Swedish capital of Stockholm next Monday and Tuesday to meet his Chinese counterparts. Besant said that his goal is to remove the American economy from consumption and enable more consumer expenses in manufacturing Chinese economy.
“President Trump is remakeing America in a manufacturing economy,” Bessent said on the Fox Business Network show “Morning with Maria”. “If we can do this, we do more manufacturing, they consume more. It will run a house for the global economy.”