US Commerce Secretary hails $550 billion trade deal with Japan as "game changer"

Washington [US], September 5 (ANI): US Commerce Secretary Howard Lutnick on Thursday said that the new trade deal with Japan will bring historic economic benefits for the United States.

Taking to social media platform X, Lutnick said, "Our historic trade deal with Japan delivers $550 billion for America to invest and strengthen our nation."

https://x.com/howardlutnick/status/1963789915268730930

He added, "We will use the funds to build our energy infrastructure, chip manufacturing, critical minerals mining, and shipbuilding to name a few."

Highlighting the significance of the deal, Lutnick stated, "What we've achieved with our Japanese partners is an absolute game changer for America's future -- and it's exactly what the America First trade agenda is all about."

He further said, "For the first time ever, President Trump will literally direct these investments for the benefit of America."

His remarks came as the White House confirmed that Trump has signed an executive order officially putting into action the US-Japan trade agreement.

According to the executive order, the agreement applies a baseline tariff of 15 per cent on nearly all Japanese imports entering the US, while Japan has agreed to invest USD 550 billion in the United States.

The White House, in a post on X, said, "@POTUS has signed an Executive Order officially implementing the U.S.-Japan Trade Agreement."

In the executive order, President Trump recalled the framework between the US and Japan announced in July earlier this year, which "lays the foundation for a new era of United States-Japan trade relations grounded in principles of reciprocity and our shared national interests."

"Under the Agreement, the United States will apply a baseline 15 per cent tariff on nearly all Japanese imports entering the United States, alongside separate sector-specific treatment for automobiles and automobile parts; aerospace products; generic pharmaceuticals; and natural resources that are not naturally available or produced in the United States," the White House said in a statement.

The order also mentioned that Japan would purchase US-made commercial aircraft, as well as United States defence equipment.

It further noted that Japan would provide to the USA's manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods producers "with breakthrough openings in market access across key sectors."

Significantly, the statement mentioned that the Government of Japan is working toward an expedited implementation of a 75 per cent increase in United States rice procurements within the Minimum Access rice scheme and purchases of United States agricultural goods, including corn, soybeans, fertiliser, bioethanol, alongside other US products, totalling USD 8 billion per year.

"Critically, unlike any other agreement in American history, the Government of Japan has agreed to invest USD 550 billion in the United States," the order mentioned.

It noted that the US Government would select the investments and that these would generate hundreds of jobs and expand domestic manufacturing.

The executive order, officially implemented by the US President, underlined that the agreement establishes a tariff framework that levels the playing field for American producers, accounts for American national security needs, expands US exports and investment-driven production, and helps reduce the trade deficit with Japan.

The announcement came as Japan's lead trade negotiator, Akazawa Ryosei, on Thursday left for a three-day trip to Washington for a new round of talks, NHK had reported. (ANI)

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