WASHINGTON: In a significant development in international trade, President Donald Trump has reached a new tariff agreement with Japan, easing tensions just days before a key deadline that would have triggered higher levies.
Under the terms of the deal, a 15% tariff will be imposed on all imported Japanese goods, down from the originally proposed 25%. The agreement comes ahead of the August 1 deadline, when the higher tariffs were set to go into effect, potentially escalating trade friction between the two nations.
The White House hailed the deal as a “major win” for American manufacturers and consumers. “This agreement shows that tough negotiation leads to fair trade,” President Trump said during a press briefing. “Japan is a vital partner, and this deal secures more balanced terms for both sides.”
The news sent shockwaves through the financial markets, with auto stocks posting strong gains. Major automakers with deep ties to Japanese manufacturing, including Ford, General Motors, and Toyota, saw their shares climb on investor optimism that the reduced tariff rate would lower costs and preserve supply chains.
Industry analysts noted that the deal provides much-needed stability in a sector that has been rattled by months of tariff threats and global supply disruptions.
