Under the new regulation, the 27.5% tariff imposed on automobiles imported from Japan has been reduced to 15%. The regulation, which will take effect seven days after its official publication, will grant retroactive tax exemptions on affected products starting from August 7. No new tariffs will be applied to commercial aircraft and spare parts.
As part of the agreement, Japan has committed to invest a total of $550 billion in infrastructure and industrial projects in the United States. These investments will be provided through state banks in the form of capital, loans, and guarantees, while the selection of projects will be made by the U.S. administration.
Additionally, the Tokyo government pledged to make $8 billion in extra annual purchases of agricultural products, including rice, corn, soybeans, fertilizers, bioethanol, and defense equipment. An increase in defense spending is also foreseen; Japan’s purchases from the U.S. will rise from $14 billion to $17 billion annually. Furthermore, Japan will purchase 100 Boeing aircraft from the United States.
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