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Seeking Alpha’s daily roundup of statements, announcements and remarks that could impact the broader market and individual stocks.
- President Trump announced that the U.S. has finally signed a trade deal with Japan.
“Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” Trump said in a post on Truth Social.
- Meanwhile, a group that represents the Detroit Three automakers expressed concern that the tariff rate on Japanese autos will be lowered to 15%, while the rate for imports from Canada and Mexico, upon which the U.S. auto industry is heavily reliant, remains at 25%.
“Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,” said Matt Blunt, head of the American Automobile Policy Council, according to CNBC.
CNBC noted that Trump has threatened to raise tariffs on Mexico to 30% and Canada to 35% on August 1. The Detroit Three consists of Ford (NYSE:F), General Motors (NYSE:GM) and European automaker Stellantis (NYSE:STLA), which owns U.S. legacy brands Chysler, Dodge, Ram and Jeep.
- Commerce Secretary Howard Lutnick said Japan’s pledge to invest billions of dollars in the U.S. could serve as a “model” for a deal with the European Union.
“It is up to them to negotiate,” Lutnick told Bloomberg, but added, “Europe is not going to give us $1 trillion to invest.”
- Treasury Secretary Scott Bessent also indicated that Japan’s investment pledge helped garner the country a comparatively low 15% tariff.
“They got the 15% rate because they were willing to provide this innovative financing mechanism,” Bessent told Bloomberg.
“They came to us with the idea of a Japan-U.S. partnership, where they are going to provide equity, credit guarantees and funding for major projects in the U.S.,” Bessent added.