• Nikkei 225 surged over 3% after a major U.S.–Japan trade deal was announced.
• The U.S. will impose a reduced 15% import duty on Japanese goods—down from the initially threatened 25%.
• Steel and aluminum remain subject to higher tariffs despite the new agreement.
• Trump claims the deal will create “hundreds of thousands of jobs” and said Japan will invest $550 billion into the U.S. economy.
• Japan has agreed to open its market further to U.S. cars and rice.
• Despite the announcement, Japanese automakers have remained silent, citing Trump’s unpredictability.
• Trump also signed a trade agreement with the Philippines, reducing tariffs for mutual benefit.
• U.S. stock markets reacted positively overall, though General Motors fell 8.1%, expecting a $4–5 billion tariff impact this year.

What’s Next?
• This deal reflects Trump’s classic “pressure-then-negotiate” approach. While the 15% tariff still imposes a cost, it’s a calculated compromise that keeps both sides talking. However, with rising protectionism and volatile leadership, businesses remain cautious—especially when policy shifts can happen overnight.