US tariffs of 50% on steel and aluminum imports are not part of the agreement

US President Donald Trump has announced that he has reached a major tariff agreement with Japan, one of the country’s largest trading partners, according to the BBC.

Under the agreement, Japan will invest $550 billion in the United States and pay a reciprocal tariff of 15%, Trump wrote on social media.

The US president added that Japan will open its economy to American goods, including cars, trucks, rice, and some agricultural products.

Japanese Prime Minister Shigeru Ishiba explained that the investment package in the US includes loans and guarantees from institutions affiliated with the Japanese government for the announced amount to allow Japanese firms to build sustainable supply chains in key sectors such as pharmaceuticals and semiconductors.

He also said that US tariffs on Japanese vehicles and parts would be reduced from 25% to 15%.

“We were the first in the world to reduce tariffs on cars and auto parts without volume restrictions,” Shigeru Ishiba said.

At the same time, US tariffs of 50% on steel and aluminum imports are not part of the agreement, said Japan’s chief tariff negotiator Ryosei Akazawa. Thus, they remain in place.

Recall that in early July, Trump officially postponed the increase in “reciprocal” tariff rates for dozens of countries until August 1, while sending letters to 14 countries with a detailed description of the duties that await them from that date. At that time, the rate for Japan was expected to be 25%.

Later, the US president gradually announced the introduction of tariffs of 50% on imports from Brazil, 35% from Canada, and 30% from the EU and Mexico from August 1.