U.S. Trade Deal with Japan Puts Pressure on South Korea to Complete Its Own Trade Deal
With the recent trade deal between the U.S. and Japan being agreed upon, this is now putting pressure on the ROK to get their own trade deal done before the August 1st deadline set by the Trump administration:
South Korea will take into account details of a recent trade deal reached between the United States and Japan in a bid to use it as a possible reference for Seoul’s trade negotiations with Washington, the presidential office said Wednesday.
U.S. President Donald Trump said Tuesday (local time) that Washington had reached an agreement with Japan to cut proposed reciprocal tariffs on Japanese goods from 25 percent to 15 percent, adding the deal also includes Tokyo’s $550 billion investment pledge.
South Korea is also seeking to reduce 25 percent reciprocal U.S. tariffs, as well as sectoral tariffs on autos, steel and aluminum, through a comprehensive trade proposal ahead of the Aug. 1 deadline set by the Trump administration.
You can read more at the link, but it seems like the ROK will likely sign a deal with at least a 15% tariff rate so their imports remain competitive against Japan.
“USA! USA! USA! MAGA!”
Sure, President Trump is often praised as a master negotiator—“The Art of the Deal,” after all. His supporters hail him as the greatest president in U.S. history.
But before we get swept up in the hype, let’s take a moment to hear from a Korea-Japan couple living in Japan for over a decade. They offer a grounded perspective on the details of Trump’s so-called “deal” with Japan—and it’s not quite the triumph it’s made out to be:
https://www.youtube.com/watch?v=tBDu-U-HGpE
They’re laughing at America.
Rice ImportsJapan was already importing about 10% of its rice market quota from abroad, but this rice was used for processed products—not for direct human consumption. Under this agreement, the U.S. will simply replace those existing sources from other countries. It’s not market expansion; it’s a reshuffle.
$550 Billion in InvestmentJapan has been the top foreign investor in the U.S. for six consecutive years. This “new” commitment essentially maintains the status quo—there’s little evidence of additional benefit to the American economy. Trump’s claim that Americans can keep 90% of the profit, what that really means is that “Americans can make as much as 90% of the profit on some joint ventures, depending on how much investment they made”. It really means nothing other than Donald Trump talking point exaggeration.
Automobile IndustryJapan gained breathing room for its auto sector without giving up much in return. The US eliminating Japan’s safety rules – well, Japanese are not going to buy American cars anyway. Japanese don’t buy pickup trucks and big SUV’s. And what about the supposed tariff pressure on Japanese cars? That isn’t as impactful as it sounds:
Tariffs will ultimately be passed on to American consumers, not Japanese manufacturers.The weakened yen gives Japanese automakers enough pricing flexibility to absorb any modest decline in U.S. sales.Meanwhile, American automakers producing vehicles in Canada and Mexico now face much steeper tariffs—up to 35%. That puts them at a disadvantage compared to Japanese rivals. In essence, Japan just ate Detroit’s lunch.So, while the headlines may suggest a big win, a closer look reveals a deal that favors Japan more than it helps average Americans. Unfortunately, the nuances of international trade often get lost in political showmanship—and many Trump supporters never stop to question the fine print. Instead, they take every word at face value, mistaking bravado for substance.
In case anyone is curious about the Japan trade deal, the Made in Japan cars were a throwaway transaction.
Over 70% of Japanese cars for the American market are made in North America.
Those still have a high tariff. That is another step.
In exchange for lower tariffs on Japanese made cars, Japan will be moving strategic supply chains from Japan to America… about a half trillion dollars…
…semiconductors, pharmaceuticals, energy, minerals, shipbuilding, AI infrastructure.
They will also buy 100 Boeing planes.
They will spend an additional 3 billion a year on military purchases.
Those that say Musk is stupid and Trump can’t negotiate are idiots of the highest order.
lol sure sure you can fantasize.
It’s not going to happen with a shady deal by bunch if monkeys.
https://m.youtube.com/watch?v=aASXOvsPXPw
Lee Xaiming – Xie Xie