Delhi, 23 July (H.S.): President Donald Trump announced a trade framework with Japan that includes a 15% tax on imported goods from the country, a reduction from a previously proposed 25% rate. He emphasized that this deal would generate Hundreds of Thousands of Jobs and stated that Japan would invest $550 billion in the U.S. while opening its economy to American autos and rice. Despite initial market concerns following previous tariffs imposed in April, the situation appears to have stabilized. However, uncertainties remain regarding the treatment of Japanese-built autos under the new tariff regime.

Trump aims to showcase his negotiation skills with these tariffs, asserting that the revenues will aid in reducing the budget deficit and encourage factories to relocate to America. Nonetheless, the imposition of tariffs may lead to increased prices for consumers and businesses, as companies might pass on the costs to customers. This concern was highlighted by General Motors reporting a 35% decline in net income due to anticipated tariff impacts. Alongside the arrangements with Japan, Trump has also announced a trade framework with the Philippines, imposing a 19% tariff on its goods while American products will face no tariffs. He reaffirmed the 19% tariff on Indonesia as well. The U.S. had significant trade imbalances with Japan, Indonesia, and the Philippines, indicating that it imports more from these countries than it exports.

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Hindusthan Samachar / Jun Sarkar