Trump to decide how Japan investment deal funds spent, says White House

The Star

The US White House has revealed more details of the US-Japan trade deal that both sides had reached the day before.   The US administration said the investment amounting to US550bil committed by Japan will be used in key industries like energy, semiconductors, critical minerals, pharmaceuticals and shipbuilding.   WATCH MORE: https://thestartv.com/c/news  SUBSCRIBE: https://cutt.ly/TheStar  LIKE: https://fb.com/TheStarOnline

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00:00The U.S. White House on Wednesday revealed more details of the U.S.-Japan trade deal

00:07that both sides had reached the day before.

00:10The U.S. administration said the investment amounting to US$550 billion committed by Japan

00:16will be used in key industries like energy, semiconductors, critical minerals, pharmaceuticals,

00:23and shipbuilding.

00:24Japan will now pay a 15 percent tariff versus the reciprocal rate of 24 percent that they

00:31initially had.

00:33Auto and auto parts tariffs have been reduced to 15 percent, but the centerpiece of this

00:37deal now is the President got Japan to commit to $550 billion in investments to revitalize

00:45American industries.

00:46And these funds will be spent at President Trump's discretion and direction into key industries,

00:51the U.S. will retain 90 percent of the profits from any investments made by this $550 billion

00:58fund.

00:59But the opening up of a country is very important to us.

01:02We have numerous countries that have opened their doors, just made some incredible transactions.

01:11But we're going to have a very, very simple tariff for some of the countries.

01:16There's so many countries you can't negotiate deals with everyone.

01:18So we'll have a straight, simple tariff of anywhere between 15 and 50 percent.

01:24A couple of we have 15 because we haven't been getting along with those countries too well.

01:28So we just say, let's pay 50.

01:31And that's the way it is.

01:33And we're making deals with various Asian countries that need it.

01:37And it's actually hard to believe you don't think of it.

01:39Asia is very close to Alaska, relatively speaking.

01:43It's not the closest, but it is pretty much the closest when it comes to oil and gas and

01:48energy.

01:49And we're making some incredible deals.

01:51The U.S. and Japan announced they had agreed to a deal which will see the tariff rate for

01:56Japanese exports to the U.S. to be slashed to 15 percent from 24 percent, and for auto and

02:03auto parts also down from 25 percent to 15 percent.

02:07The U.S. said Japan will also open up its market to American companies, while both countries

02:13will form a joint venture for liquefied natural gas in Alaska.

02:16The U.S. administration also struck trade deals with Indonesia and the Philippines over

02:39the past week.

02:40It has sent a total of 25 letters on reciprocal tariffs to countries around the world as many

02:46nations are racing against the August 1st implementation date to strike a deal with the U.S.

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