US Signs Major Trade Deals with Japan, Asian Countries, Eases Tariff Pressures

President Trump has announced significant trade deals with Japan and several Asian countries, easing previously threatened high tariffs and offering relief to exporters and consumers. The U.S.-Japan agreement includes a reduction of reciprocal tariffs on Japanese imports to 15%, down from an initially proposed 25%, and entails a $550 billion investment from Japan into the U.S., along with cooperation on natural gas exploration in Alaska. Similar tariff reductions were made for the Philippines and Indonesia, with tariffs set at 19%, while Vietnam faces a 20% tariff with stricter measures on goods transshipped from China. Negotiations with China remain ongoing, with a possible extension beyond the August 12 deadline to allow more time for talks, and a potential Trump visit to China is also anticipated. These trade deals have boosted emerging market currencies and stock markets, notably Japan's Nikkei, reflecting optimism about avoiding the most severe tariff impacts. However, steep tariffs on U.S. imports of steel and aluminum persist, and several countries, including South Korea and Thailand, have yet to finalize agreements, with economists cautioning about the broader economic impact.