US-Japan trade deal may not be as clear as Trump proclaims it to be
United States (US) President Donald Trump proudly declared an impending trade deal between the US and Japan earlier this week, touting an arrangement that would see US importers pay a much milder 15% tariff fee on all goods imported from Japan compared to the threatened 25% level that President Trump initially brought to the table. Despite Donald Trump’s assurances earlier this week, Japan may not be as eager to give up 90% of the profits, in perpetuity, from a $550B investment in US-based businesses in exchange for slightly lower tariffs on Japanese goods.
According to a statement by a Japanese government official early Friday, Japan expects that the exact terms of the $550B investment package will see profits being split between the two countries based on the degree of contribution by both sides. This stance directly contradicts President Trump’s assertion that Japan would bear the entire investment burden on its own, with the US receiving 90% of the profits.
Keeping on-brand for how most preliminary trade deals with the Trump administration play out, any specific details about the trade agreement remain limited to the point of not existing, undermining the Trump team’s vocal declarations of successfully negotiating new, last-minute trade deals.
Source: Fxstreet
