The Japan-U.S. trade agreement is seen as a win-win, and other Asian countries may follow suit 250728

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The United States announced a major trade agreement with Japan, which will impose a 15% tariff on Japan's automotive industry, while Japan has agreed to invest $550 billion in the U.S. This agreement will not only create hundreds of thousands of jobs in the U.S. but also allow the U.S. to capture 90% of the profits. Japan made significant concessions in the agreement, allowing U.S. agricultural products to enter the Japanese market, which presents a huge opportunity for U.S. agricultural products, especially U.S. rice, which may gain a breakthrough in the Japanese market due to its significant price advantage. This agreement is seen as a win-win for both the U.S. and Japan, although Japan's pledged investment may negatively impact the yen, it is a crucial step for the Japanese economy.

Meanwhile, the U.S.-Japan agreement also sets a tactical precedent for other Asian countries, especially for economies still negotiating with the Trump administration. This agreement may prompt other countries to accept similar terms to avoid more severe economic consequences. At the same time, the EU is also in trade negotiations with the U.S. and may agree to a 15% tariff on European imports to prevent the U.S. from raising tariffs further. This series of trade agreements demonstrates the U.S.'s influence in global trade and may have profound effects on the global economy.

Source: "XQ Global Winners" Terminal