According to economists, a new final trade agreement between the United States and Japan has calmed down the fear of World War II and could become a model for other countries that negotiate with Washington.
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This transaction reduces US tariffs on Japanese car imports from 27.5 % to 15 % and reduces the tasks of other Japanese goods from 25 % to 15 %. However, it is still noticeable, the rate of 15 % is seen as controllable and far less than the previous one or pervasive threats.
Economists say the agreement provides the most necessary clarity required for jobs that have been trying to make investment decisions among the uncertainty of investment decisions. “The average tariff in the United States in 2024 was about 2.5 % and now they are closer to 17 %,” said Mohit Kumar of Jeffrey. “Although not ideal, the rate of 15 % is what the global economy can attract.”
The deal also includes commitments for Japanese investment and trade -related loans limited to the United States, which has guaranteed it to the most influential President Donald Trump’s agreement so far. The pressure on China and the European Union increases, both of which in August to settle their business negotiations with the United States with quick deadlines
Positive world markets responded. Japan’s Nikkei stock index rose by 3.5 %, while European carmakers increased with large US exposure. Volvo, BMW, Porsche, Mercedes -Benz and Volkswagen stocks increased by 4 to 10 percent.
“This positive move to investors hopes that other major economies can also reach efficient agreements,” said MUFG analyst. “We see 10 to 15 % that appear as a new standard for tariff levels among large economies.”
While the US -Japanese agreement has cooled urgent fears, the risks remain. The European Union is still facing a threat of 30 % of the United States in the event of disagreement by August 1. This level significantly disrupts the EU and the United States trade, although the initial hopes of a 10 % hat are now changing to higher compromise.
China is also under pressure, with August 12, which could pay 145 % tariffs on US goods and if negotiations fail or guarantee failure, to 145 % of US goods and 125 % in Chinese exports.
“The Japanese agreement is likely to lead other Asian countries to accelerate negotiations,” Ing said. “We have already signed contracts with the Philippines and Indonesia and more transactions are foreseen before August 1.”
Meanwhile, long -term inflation expectations in the United States fell slightly after the Japanese agreement, hoping that continued trade progress could reduce price pressures and eventually allow the Federal Reserve to consider the decline. However, at the next Federal Reserve session there is no change in the rate, and the markets are not expected to decline until October.
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