Wed, 23 Jul 2025

Wed, 23 Jul 2025 Faisal Islam: Trump's tough tariff tactics are getting results

Following the deal with Japan, it could now be said that the aggressive approach to trade by Trump is yielding results.
Japan has reached a trade deal with the US, which could be seen as a success for President Donald Trump's approach to global trade. The agreement was negotiated despite initial resistance from Japan, and it comes at a time when other major economies, including the European Union (EU), are considering retaliation against US tariffs. The deal will see the US impose a 15% tariff on Japanese goods imported into the country, but in return, Japan has agreed to import more US rice and allow Japanese private companies to invest $500 billion in the US. The agreement also protects Japanese agricultural imports. This deal is significant because it follows threats from Trump to impose a 25% tariff on Japanese goods if no agreement was reached. The fact that Japan has agreed to this deal could be seen as a sign of weakness, but some analysts argue that Tokyo was playing hardball and using its $1.1 trillion holding of US Treasury bonds as leverage. The impact of the trade war on consumers is still unclear, but it's expected that they will bear the brunt of the tariffs in terms of higher prices for imported goods. The weakening of the US dollar could also add to the cost of imports. Some analysts have suggested that the White House may be using the weaker dollar as a tool to boost competitiveness for American manufacturers. Meanwhile, China has benefited from the trade tensions between the US and other countries, which has helped it make the case to the rest of the world that it can be a more stable trade partner. Overall, the Japan-US deal is seen as an important win for Trump ahead of deadlines next week, but the broader economic picture remains uncertain.
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