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U.S. and Japan Seal $550 Billion Investment Deal
26 Aug
Summary
- U.S. to announce $550 billion Japan investment deal
- Japan's top trade envoy to visit D.C. to formalize agreement
- Tariffs on Japanese goods to be reduced to 15%
According to the latest reports, the U.S. government is preparing to announce a major $550 billion investment deal with Japan later this week. The deal was initially agreed upon in July, but details have remained obscure until now.
Commerce Secretary Howard Lutnick revealed that the agreement, brokered under the Trump administration, will see Japan invest $550 billion in the U.S. through government-backed loans and guarantees. This substantial investment is expected to boost economic ties between the two countries.
To formalize the deal, Japan's top trade negotiator, Ryosei Akazawa, is reportedly planning to visit Washington as soon as this week. The two sides are working to finalize a written agreement, with Japan hoping to keep the document less legally binding. In exchange, the U.S. is set to issue a presidential order to lower tariffs on Japanese goods to 15%, down from the current 27.5%.
The lack of a signed document had previously created confusion in Tokyo about the tariff rates, but U.S. officials have now clarified that Japanese goods are exempt from overlapping levies. This latest development is seen as a significant step forward in strengthening the economic partnership between the world's largest and third-largest economies.
