Japan Secures Best Tariffs from U.S. in New Trade Deal

Japan has clinched a crucial trade deal with the United States that guarantees the country's access to the lowest tariff rates on chips and pharmaceuticals established by Washington, according to Japan's lead trade negotiator. Ryosei Akazawa announced that any reductions secured by third nations with the U.S. will automatically apply to Japan.

The agreement mirrors a similar framework reached with the European Union, which secured a 15% baseline tariff rate. In exchange for reduced tariffs on automobiles and other products, Japan will invest $550 billion in the U.S. through various financial instruments including equity and loans.

With questions surrounding the lack of an official agreement statement, Akazawa highlighted Japan's priority of having President Donald Trump sign an executive order to implement the agreed tariffs. Only after achieving this critical milestone will Japan consider formalizing the agreement through an official document.

(With inputs from agencies.)