(Reuters) -President Donald Trump on Tuesday said the U.S. and Japan had struck a trade deal that includes a 15% tariff that will be levied on U.S. imports from the country.
In a post on Truth Social, Trump said the deal would include $550 billion of Japanese investments in the United States.
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KRISTINA CLIFTON, SENIOR ECONOMIST, COMMONWEALTH BANK OF AUSTRALIA, SYDNEY:
“We don’t know all the details yet, apart from just that he will place a 15% tariff on imports from Japan.
“It’s a lower rate than what President Trump announced on Liberation Day, so to that end, it’s a better outcome than potentially they could’ve seen. Steel, aluminium, and also cars are important exports for Japan, so it’ll be interesting to see if there’s any specific carve-outs for those.”
HIROFUMI SUZUKI, CHIEF CURRENCY STRATEGIST, SMBC, TOKYO:
“This is good news for the Japanese economy. However, it alone will not prompt the Bank of Japan to raise interest rates, and the pressure to buy yen will likely be limited. If anything, political instability is having more of an impact on the market, and the pressure for yen depreciation is likely to continue.”
(Reporting by Reuters Asia bureaus; Compiled and edited by Subhranshu Sahu)
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