U.S.-Japan Strike Major Trade Deal Reducing Tariffs

The U.S. and Japan have forged a pivotal trade deal, reducing a planned 25% tariff on imports from Japan to 15%. This agreement is part of a series of deals anticipated as the deadline for higher tariffs loomed on August 1.

Market reactions varied, with some viewing the deal as a positive surprise, considering the previously higher tariffs suggested by President Trump. The agreement also involves Japan pledging $550 billion in investments in the U.S. and easing market access for American products.

While the trade deal has helped dodge severe tariff implications, it may face political resistance, especially concerning agricultural imports. Market experts suggest the deal's impact might be muted, but political and economic landscapes in Japan could still shift dramatically.

(With inputs from agencies.)