US imposes 15% tax on Japan, 19% on Philippines

President Trump will impose a new reciprocal tax of 15% on Japan and 19% on the Philippines, according to the agreement the US has just reached with these countries.

On July 22, on the social network Truth Social, US President Donald Trump said that he had just reached the "largest agreement in history" with Japan. Accordingly, the new reciprocal tax applied to this country is only 15%.

Japan will also invest 550 billion USD in the US. Mr. Trump affirmed that Washington will receive "90% of the profits" from these investments.

The US President announced that Japan "will fully open its market to American cars, trucks, rice, some agricultural products and many other items". The agreement will therefore create "hundreds of thousands of jobs".

Japan was among the first countries to initiate negotiations with the US, but has only now reached an agreement. The US President has repeatedly complained that this country is "tough" in negotiations and does not agree to buy American rice.

In addition to Japan, President Trump said he also reached a trade agreement with the Philippines, with a 19% tariff. This is also the rate Trump imposed on Indonesia.

Japanese Prime Minister Shigeru Ishiba and US President Donald Trump at the White House in February 2025. Photo: Reuters

The announcement of the agreement with the Philippines was briefer. In exchange for a tariff reduction to 19%, from the 20% announced in the July 9 memo, the Philippines will "open its market to US goods, bringing import tariffs to 0%". Mr. Trump revealed that the two sides will also increase military cooperation, and commented that Philippine President Ferdinand Marcos is a "very good and tough" negotiator.

In the memo earlier this month, Mr. Trump imposed a 25% tariff on all imports from Japan. This is higher than the 24% rate announced on April 2. Previously, like other countries, Japanese cars entering the US were subject to a 25% tariff. Cars are one of the pillars of the Japanese economy, contributing 28.3% of the country's exports to the US in 2024, according to customs data.

https://www.youtube.com/watch?v=rgZhETaOf8I

Last weekend, US Treasury Secretary Scott Bessent wrote on social network X that a trade deal with Japan "is still possible". Earlier this week, Mr. Trump raised concerns about this prospect, declaring that the partner "will not open its market". Earlier this month, Prime Minister Shigeru Ishiba also affirmed that "it will not be easy to make concessions".

The US is currently Japan's largest export market. Figures released on July 17 showed that Japan's exports to the US fell for the second consecutive month, due to the impact of import tariffs.

Accordingly, export turnover to the US decreased by 11.4% in June compared to the same period last year. This is the largest decrease since the beginning of 2021. Car turnover alone decreased by nearly 27%. Auto parts decreased by 15.5% and pharmaceuticals decreased by 41%.

Ha Thu (according to Reuters, CNBC)