The US-Japan trade agreement shocks the world! Trump announces new 15% tariff policy, Japanese stock market soars, Shiro Ishiba's fate is uncertain

XM Foreign Exchange APP News-At a time when the global economy is changing, the United States and Japan have reached a highly anticipated trade agreement, which has aroused heated discussion and widespread attention in the market. U.S. President Trump announced on Tuesday night local time (Wednesday morning Beijing time) through social media that the agreement will not only impose 15% tariffs on Japanese automobiles and other products, but also involves Japan's investment plan of up to $550 billion in the United States and a joint venture of liquefied natural gas (LNG) in Alaska. This news was like a bombshell, quickly igniting the Japanese stock market, once pushing up tariffs from 25% to 15%, and the Japanese auto industry ushered in a dawn According to the Japan Broadcasting Association (NHK), citing government officials, one of the core contents of the US-Japan trade agreement is to reduce the US tariffs on Japanese cars from 25% to 15%. As a pillar industry for Japan's exports to the United States, automobiles account for more than a quarter of Japan's total exports to the United States. This tariff reduction undoubtedly injects a shot in the heart of Japanese automakers. After the agreement was reached, the Japanese stock market responded quickly and the automobile sector exploded across the board. Toyota's stock price soared 8.8%, Honda's stock price rose 8.4%, and Nissan also rose 7.8%, becoming the main force driving the Nikkei 225 index to rise by 2.9%, setting a new high for more than a year. Meanwhile, U.S. stock index futures have also been boosted, showing general optimism about the deal. The dollar fluctuated 0.27% against the yen, hitting a more than one-week low of 146.19, but it has recovered its decline and traded around 146.53. However, the chief foreign exchange strategist of Sumitomo Bank in Mitsui pointed out that despite the agreementIt is good for the Japanese economy, but this alone is not enough to lead to the defeat of the election of the ruling coalition in Japan. Shigeru Ishiba is facing a crisis. The conclusion of the US-Japan trade agreement is a time of turmoil in Japan. In the congressional elections last Sunday (July 20), the ruling coalition of Japan lost control of the Senate, and Prime Minister Shigeru Ishiba was facing tremendous political pressure. According to the Yomiuri Shimbun, Shigeru Ishiba plans to decide whether to resign as prime minister as soon as possible after evaluating the progress of trade negotiations. He stressed that Japan currently faces multiple challenges, including vejck.cnplex trade negotiations with the United States, and rashly creating a political vacuum may have an adverse impact on the export-dependent Japanese economy. Therefore, the conclusion of this trade agreement may have gained valuable breathing space for Shiroshi Ishiba's government. Responding cautiously, Shigeru Ishiba did not disclose details yet. Earlier on Wednesday, Shigeru Ishiba said in Tokyo that he had received preliminary reports from Japanese trade negotiators in Washington but refused to vejck.cnment on the specifics of the agreement. He said it is difficult to assess the impact of the agreement on its political future until more details are seen. Shigeru Ishiba is expected to meet with the ruling party heavyweights later on Wednesday to discuss the election results and follow-up response strategies. Shigeru Ishiba said at a live press conference that he had reached an agreement with the United States on imposing 15% tariffs on the United States and Japan. Japan and the United States reached an agreement on strengthening supply chain cooperation with the United States and ensuring economic security through investments in semiconductors, steel, shipbuilding, energy, automobiles, etc. Shigeru Ishiba said that under Japan's current "minimum access system" for rice, the proportion of rice imported from the United States will be increased. This move will not sacrifice Japanese agriculture. 3. Expert interpretation: The far-reaching impact of economy and policies Economists optimistic forecasts: Japan's economy is expected to be safe-haven. Kazutaka Maeda, an economist at the Ayuri Yasuda Institute, said that a 15% tariff rate will help the Japanese economy avoid falling into recession. He believes that this tax rate is a relatively moderate result vejck.cnpared to Trump's previous high tariff threat, providing greater certainty for Japanese export vejck.cnpanies. Kristina Clifton, senior economist at the Federal Bank of Australia, also pointed out that steel, aluminum and automobiles are important export products of Japan, and the specific terms of the agreement will have a profound impact on these industries and deserve close attention. Bank of Japan's interest rate hike expectations warm up Citi Investment Research's interest rate strategist Tomohisa Fujiki pointed out in a report that the conclusion of the U.S.-Japan trade deal could boost expectations of the Bank of Japan's interest rate hikes. As trade uncertainty fades, the Bank of Japan may adopt austerity policies earlier than market expectations. Currently, the swap market shows that the Bank of Japan's chances of hikes again by the end of 2025 are about 75%. This probability could rise further if the Bank of Japan sends a tightening signal at its meeting next week. Affected by this, the yield on the five-year Japanese Treasury bond rose by 9 basis points to 1.110%, and the yield on the ten-year Treasury bond also rose by 8.5 basis points to 1.585%. 4. Trump’s trade ambitions and global pattern. Promoting multilateral trade agreements. The US-Japan trade agreement is the most important of many trade agreements recently reached by Trump. Previously, he has announced a framework agreement with the UK, Vietnam and Indonesia and suspended tariff war with China. However, details of these agreements still need further discussion. Meanwhile, Trump said EU negotiators will arrive in Washington on Wednesday, showing their ambitious ambitions in the global trade sector. The urgency of the August 1 deadline, according to people familiar with the matter, Trump was holding talks with Japanese Economic Regeneration Secretary Ryo Akazawa at the White House on Tuesday before announcing the agreement. Japanese negotiator Ryo Akazawa celebrates the conclusion of the agreement on the X platform with "# mission vejck.cnpletion". Trump's team is going all out to finalize more details of the trade agreement by the August 1 deadline, demonstrating its determination to effectively advance the trade agenda. Summary: Global significance of the US-Japan Trade Agreement The conclusion of the US-Japan trade agreement not only injects new vitality into the economies of the two countries, but also has a far-reaching impact on the global trade pattern. The tariff cuts, huge investments and energy cooperation projects mark a further deepening of U.S.-Japan economic relations, while the carnival in the Japanese stock market and the strengthening of the yen reflect the market's positive response to the agreement. However, details of the agreement are yet to be disclosed, and the political fate of Japanese Prime Minister Shigeru Ishiba has added more variables. In the future, as more details surface, the impact of this agreement will further emerge and deserves close attention from the world. At 10:01 Beijing time, the US dollar against the Japanese yen is now at 146.57/58.

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