US and Japan strike trade deal
Trump signed what he's calling the 'largest deal ever made'


What happened
President Donald Trump signed a trade deal with Japan Tuesday, "pleasantly surprising investors," Reuters said. It lowers tariffs on imported Japanese goods — including cars and auto parts — from 25% to 15%. Japan will also invest $550 billion in the U.S. S&P 500 and Nasdaq futures were up slightly on the news; Japan's Nikkei jumped 3.7%.
Who said what
Japan is the "first in the world to be able to reduce tariffs on automobiles and auto parts without volume restrictions," Japan's tariff negotiator Ryosei Akazawa said. Trump hailed the deal as "maybe the largest deal ever made."
The new levies are still "higher than the 10% rate that had been in force while the countries negotiated," suggesting "Trump is willing to keep elevated tariffs" on major trading partners, the Financial Times said. But this does put Japan "at an advantage" over competing vehicle importers, CNN said.
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What next?
Other nations will be hoping for similar agreements ahead of Trump's August 1 tariff deal deadline. Representatives from the European Union are in Washington for trade talks today, and negotiations with South Korean officials are set for Friday.
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Jessica Hullinger is a writer and former deputy editor of The Week Digital. Originally from the American Midwest, she completed a degree in journalism at Indiana University Bloomington before relocating to New York City, where she pursued a career in media. After joining The Week as an intern in 2010, she served as the title’s audience development manager, senior editor and deputy editor, as well as a regular guest on “The Week Unwrapped” podcast. Her writing has featured in other publications including Popular Science, Fast Company, Fortune, and Self magazine, and she loves covering science and climate-related issues.
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