Trump finalizes Japan trade deal with 15% tariffs

[A tower made of containers collapsed by the weight of tariff]

U.S. President Donald Trump signed an executive order on Thursday to put into effect a trade deal with Japan, with 15% baseline tariffs on most Japanese goods, including autos.

As part of the newly signed trade agreement, Japan has agreed to invest $550B in projects selected by the U.S. government.

Tokyo has also committed to increasing its purchase of American agricultural products such as corn and soybeans, along with U.S.-made commercial aircraft and defense equipment.

According to the executive order, U.S. will apply a baseline tariff of 15% on all Japanese imports, with sector-specific levies for automobiles, aerospace products, and pharmaceutical goods.

The order also prevents Trump’s country-specific tariffs on top of existing levies.

Japan has agreed to offer the U.S. “breakthrough openings in market access” in the manufacturing, aerospace, agriculture, and automobile sectors.

The Japanese yen (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]) was last down 0.88% against the U.S. dollar.

_Japan-based ETFs to track: (NYSEARCA:EWJ [https://seekingalpha.com/symbol/EWJ]) (DXJ [https://seekingalpha.com/symbol/DXJ]) (DFJ [https://seekingalpha.com/symbol/DFJ]) (HEWJ [https://seekingalpha.com/symbol/HEWJ]) (DBJP [https://seekingalpha.com/symbol/DBJP]) (FLJP [https://seekingalpha.com/symbol/FLJP]) (FXY [https://seekingalpha.com/symbol/FXY]) (YCL [https://seekingalpha.com/symbol/YCL]) (YCS [https://seekingalpha.com/symbol/YCS]) _

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