President Trump said Japan has agreed to invest $550 billion (about 81 trillion yen) in the US as part of a trade deal, calling it a “signing bonus” like what a baseball player might get. He emphasized that it’s “our money to invest however we want.”
However, Japan says that money isn’t a direct payment, but rather the total amount of investment from Japanese companies that may be supported by government-backed loans and guarantees. So, the two sides clearly disagree on what the deal actually means.
Trump also claimed the deal shows how open Japan has become to US business, saying, “You used to get arrested for doing business in Japan, but now they even import our rice.” He also said Japan will import US cars, including the large Ford F-150 pickup truck — even though that kind of vehicle isn’t very practical in Japan’s narrow streets.
Meanwhile, Trump’s administration announced a presidential order that sets a new 15% reciprocal tariff on all imports from Japan, which again doesn’t match Japan’s explanation. Japan says only goods currently taxed at less than 15% will be raised to that level, and goods already taxed higher (like beef at 26.4%) won’t be affected.
Interestingly, the US appears to be treating the EU differently — giving more detailed, flexible tariff rules — even though the EU supposedly agreed to the same terms as Japan. Japan says the US promised it would get the same treatment as the EU, but the documents published so far suggest otherwise.
by MagazineKey4532