The United States and Japan agreed with a day-to-day trade agreement before the last price deadline set by Donald Trump.
Under the terms of the agreement, rather than all Japanese products being struck by a 24% tax on entry to the United States, they will rather be subject to a rate of 15%.
Significantly, and unlike the US-UK dealThere is no ceiling on the number of Japanese cars submitted at the top price agreed. The direct debit on cars and car parts was reduced from 25% to 15%, making it the first country to obtain a reduction in the rate of 25% on vehicles.
Cars represent more than a quarter of all Japan exports in the United States.
Japanese steel and aluminum are still subject to a price of 25%.
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It is a little more than a week until the end of the August 1 break on the prices, itself, a six-week extension of the President of Freeze on July 9, 90 days, Trump in April.
It is a victory for all parties because Japan is a large trading partner in the world’s largest economy.
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What is in the British-American trade agreement?
To materialize the agreement, Japan has agreed with a set of loan investment and guarantees of $ 550 billion (406 billion pounds sterling) of institutions affiliated to the Japanese government in key sectors such as pharmaceutical products and semiconductors.
Japan will also increase the purchase of American agricultural products such as rice.
Market reaction
The markets welcomed the news.
In the United States, the value of a dollar has checked and in Japan, the reference scholarship, the Nikkei, won considerably and closed more than 3.5%.
The index includes many major car manufacturers, including Nissan, Honda, Mazda, Toyota and Mitsubishi, who all gathered after the news.
Other Asian stock market indexes have closed, including Kospi Korea, which increased by almost 0.44%, Hang of Hong Kong, which increased by more than 1.6%, and the fixed index of Thailand, which increased by more than 2.3%.