00:00In the last few minutes, President Donald Trump says the U.S. has reached a trade deal with Japan.
00:06He's calling it perhaps the largest deal ever made.
00:09To include vehicles and agricultural products, Japan and the U.S. will each pay a tariff of 15% on goods.
00:18But I just signed the largest trade deal in history. I think maybe the largest deal in history with Japan.
00:23And that was done with Japan. They had their top people here and we worked on it long and hard.
00:34And it's a great deal for everybody. I always say it has to be great for everybody.
00:38It's a great deal. A lot different from the deals in the past. I can tell you that.
00:43But we're doing really well as a country. We're strong. We have a lot of money flowing in.
00:48The tariffs are kicked in better than anybody other than me and a few of the people in the room thought could happen.
00:56Rosalind Jordan joins us live from Washington, D.C. now with more on this.
01:00So what more do we know about this trade deal and its significance?
01:06Well, this is only the second trade framework that has been reached since the U.S. reached a similar deal, some would posit, back in May.
01:17Now, we don't know much more about exactly which Japanese products are going to be subjected to the 15% reciprocal tariff.
01:27We also don't know specifically what more beyond automotive and agricultural products from the U.S. will be going into the Japanese market.
01:37We don't know exactly when this is all supposed to take effect, even though the president has a deadline for the beginning of August to spell out just how detailed these trade frameworks are supposed to be.
01:50This does come a few hours after the White House announced that it had also reached a trade framework with Indonesia.
01:59The president making note of the fact that Indonesia would be sending precious rare metals, things that are used in the production of technological items to the United States.
02:10And that in exchange, it would not only buy agricultural products, but it would also buy Boeing aircraft.
02:16We don't have a dollar price on that.
02:19And there's also the wrinkle that could affect not just the Indonesian deal, but the Japanese deal as well,
02:25that any products that come from multiple sources, including from China, could be subjected not to a lower tariff rate for Japan of 15% and for Indonesia of 17%.
02:38But if those goods contain material coming from China, the tariff could rise up to 40%.
02:46Now, there's also no way to fact check just how much money has been collected in tariffs,
02:52because usually what the countries end up doing is building in the cost of covering those tariffs into the price of goods sold to U.S. consumers.
03:02And that is now starting to show up.
03:04Economists are suggesting that means that you are probably going to see inflation on the rise in the second half of 2025.
03:13President Jordan, thanks very much.
