Trump Japan Trade Deal Announced With $550B Investment

Trump Japan Trade Deal Could Reshape US Manufacturing and Crypto

US President has made a big agreement breakthrough-signing new deals with Japan, the Philippines, and Indonesia a few days ahead of his August 1 deadline. Among them is the Trump Japan Trade Deal, which labeled as "the largest commerce agreement in history."

What's in the Trump Japan Trade Deal?

The Nation has signed to reduce trade tariffs and car import taxes to 15% from 25%, making it more affordable for Americans to purchase cars from the country. Under the agreement, They will invest $550 billion in the United States, primarily to increase the manufacturing industry. He explained the investment would create jobs, restore factories, and restore "Made in America" pride.

This action would also benefit Prime Minister Shigeru Ishiba as he's facing political woes at home. The agreement would possibly help him regain popularity by demonstrating a powerful international leadership.

Source : X

After Trump Japan Trade Deal - New Tariffs against the Philippines and Indonesia

As part of the Trump Japan Trade Deal, He also announced two new deals with the Philippines and Indonesia.

For the Philippines, the US goods tariff will be lowered from 6% to 0%, which implies that their people will pay less for American products. But the US will now impose a 19% tariff on Philippine goods, increased from 10% in 2024.

Source: @PeterSchiff

The same trend is true with Indonesia: Americans will now be paying 19% to purchase Indonesian products, while Indonesians pay zero to import American goods. These agreements, though touted as victories, have been raised eyebrows.

Market Experts Respond on Trump Japan Trade Deal

Financial commentator Peter Schiff was scathing in his criticism of Trump Japan Trade Deal agreements. On X (formerly Twitter), he posted that these new terms grant free business benefits to other nations while American consumers pay more.

Citing the Indonesia agreement, Schiff stated:

"We pay 19% to purchase their things, they pay zero to purchase ours. That is not a victory-it's us being protectionist and them saving money."

Source: X

For the Philippines agreement, he remarked:

"They reduce tariffs to 0%, we increase ours to 19%. Obviously a victory for them and a defeat for us."

Schiff's worry is that even though they might appear large on paper, the imbalance in tariffs against smaller U.S. President Dealonomies might harm American consumers.

What Does This Mean for Crypto?

These international deal maneuvers might also have implications for crypto space. A $550 billion Japanese investment in US sectors can boost market liquidity, which tends to bring more funds into crypto instruments such as Bitcoin and Ethereum.

If the manufacturing surge translates into improved economic performance, institutional and retail investors could look to crypto as an asset of growth. Additionally, with tariffs increasing the price of imported technology, the US blockchain sector might receive additional investment and innovation locally.

Final Thought: 

The Trump Japan Trade Deal is an ambitious bid to redraw world business. With enormous investments, reduced tariffs, and high-stakes politics at play, the agreement has the potential to make big waves in the US economy, Asian alliances, and even the crypto markets. But with skeptics such as Peter Schiff sounding warnings, it will be up to time alone to decide if this is indeed a victory- or simply another headline maker.