Under the new regulation, the tariff on automobiles imported from Japan has been reduced from 27.5% to 15%. The regulation, which will take effect seven days after its official publication, will also grant retroactive tax exemptions for affected products dating back to August 7. No new tariffs will be applied to commercial aircraft and spare parts.
$550 Billion Investment
As part of the agreement, Japan agreed to invest a total of $550 billion in infrastructure and industrial projects in the U.S. The investments will be provided through state banks in the form of capital, credit, and guarantees, while the selection of projects will be made by the U.S. administration.
In addition, the Tokyo government pledged to purchase an additional $8 billion annually in agricultural products such as rice, corn, soybeans, fertilizers, bioethanol, and defense equipment. Defense spending is also expected to increase, with Japan’s annual defense purchases from the U.S. rising from $14 billion to $17 billion. Japan will also purchase 100 Boeing aircraft from the U.S.
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