Trump says we have reached a trade deal with Japan

President Donald Trump said the United States has agreed to a “massive” trade agreement with Japan, one of the country’s largest trading partners.

Japan has agreed to invest $55 billion (£400.7 billion) in the United States, while goods sold to the United States will be taxed 15% when they arrive in the country – less than Trump’s 25% tariff.

Trump said on social media that Japan will open its economy to U.S. goods, including cars, trucks, rice and certain agricultural products.

Japanese Prime Minister Shigeru Ishiba welcomes It was declared that it was “the lowest number between countries with trade surplus with the United States”.

Trump touted at a White House event on Tuesday night: “I just signed the largest trade deal in history, and I think maybe the biggest deal in history with Japan.”

He added: “They have their top characters here and we work hard. It’s a lot for everyone. I always say it has to be great for everyone. It’s a lot.”

Ishiba said on Wednesday that the agreement would mean U.S. tariffs on vehicles, with parts set to be reduced from 25% to 15%.

But when he suspended so-called reciprocity tariffs between April and July, the tax rate was higher than 10% of the taxes Trump levied in Japan and other countries.

“We are the first person in the world to reduce tariffs on automobiles and auto parts without any quantity restrictions,” Ishiba said.

When cars sent to the United Kingdom to the United States arrive at the U.S. coast, the tax rate is below 10% but this is limited to 100,000 vehicle quotas.

“The agreement does not include any reduction in tariffs on the Japanese side,” Ishiba added.

The BBC has contacted the White House and Japan’s embassy in Washington for more details on the trade agreement.

Shigeto Nagai of research firm Oxford Economics told BBC News that its main tariff rate drop to 15% is Japan’s “the best compromise at the moment.”

He added that Japan’s planned investment in the U.S. in the announcement included “a huge push to restore the U.S., suitable for Trump to restore the U.S. in a story of making more work for the U.S..”

In a letter sent to Japan this month, if no new trade agreement was reached before August 1, it threatens the country’s 25% tariffs on exports to the United States, the speed he announced on April 2 the so-called Liberation Day.

The April tariff plan included the responsibilities of many U.S. trading partners around the world, which was suspended for 90 days after global market turmoil. It gives Tokyo’s trade representatives time to negotiate with their counterparts in Washington.

Japan’s benchmark share index, Nikkei 225, rose more than 3% in Tokyo on Wednesday, with stocks in auto industry giants including Toyota, Nissan and Honda gaining a lot of gains.

The obvious deal is Ispima is under pressure to step down after his Liberal Democratic Party (LDP) loses majority In the weekend elections, the country’s upper house.

Last year, the Liberal Democratic Party had lost its majority in Japan’s stronger House of Commons.