US-Japan Trade Deal: The Untold Risks Trump Isn’t Telling You About—Is It Really the Win He Claims?
So, President Trump just dropped the news about a shiny, new preliminary trade deal with Japan—one that supposedly slashes tariffs from a daunting 25% down to a way friendlier 15%. Sounds like a win, right? Well, hold on a second. The whole pitch about Japan investing a whopping $550 billion in U.S. businesses *and* giving up 90% of the profits? That might have been a bit premature, to say the least. Japanese officials swooped in quietly on Friday, raining on the White House’s parade by clarifying that profits will actually be split based on contribution, not some lopsided giveaway. It’s like trying to build a skyscraper without a blueprint—lots of hype, but the nuts and bolts are still MIA. Makes you wonder: are we witnessing savvy negotiation or just smoke and mirrors? Either way, this unfolding saga perfectly captures the messy dance between big promises and gritty realities in global trade. LEARN MORE
- President Trump touted a preliminary trade deal with Japan earlier this week.
- Trade terms may be far less agreed-upon than White House officials led markets to believe.
- The announcement that Japan would invest $550B in US businesses for only 10% of the profits may have been premature.
- Japanese officials quietly hit newswires on Friday to tamp down market expectations.
United States (US) President Donald Trump proudly declared an impending trade deal between the US and Japan earlier this week, touting an arrangement that would see US importers pay a much milder 15% tariff fee on all goods imported from Japan compared to the threatened 25% level that President Trump initially brought to the table. Despite Donald Trump’s assurances earlier this week, Japan may not be as eager to give up 90% of the profits, in perpetuity, from a $550B investment in US-based businesses in exchange for slightly lower tariffs on Japanese goods.
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