Trade tensions and negotiations are heating up as former President Donald Trump pushes forward with sweeping tariffs and multi-billion-dollar investment promises. On Saturday, Japanese trade negotiator Ryosei Akazawa indicated that Japan’s eye-popping $550 billion “investment” in the U.S.—which Trump announced last week—could help bankroll a Taiwanese chipmaker’s U.S. operations. While Akazawa didn’t name a company, Taiwan’s TSMC recently unveiled plans for a $100 billion expansion in the U.S., including three Arizona plants, one already operational.
“For example, if a Taiwanese chipmaker builds a plant in the U.S. and uses Japanese components or tailors its products to meet Japanese needs, that’s fine too,” Akazawa said, as reported by Reuters.
Trump described the Japanese commitment as part of a broader effort “to lower their tariffs a little bit,” and unveiled a 15% tariff on Japanese goods in the same breath. However, negotiations over profit sharing appear rocky—Japan is pushing for an arrangement tied to financial contributions, while the U.S. insists on keeping 90% of profits.
Meanwhile, Trump weighed in on the high-stakes talks with Europe, telling reporters, “I would say that we have a 50-50 chance, maybe less than that, but a 50-50 chance of making a deal with the EU,” ahead of a planned meeting with the European Commission President in Scotland.
Trump added that letters outlining new tariff structures for over 200 countries would be sent out soon, as his administration presses forward with deals involving the EU, India, and Canada. But his comments on Canada were less than optimistic: the U.S. hasn’t had a “lot of luck” with Ottawa, and Trump hinted that a 35% tariff could be imposed on imports not covered by the existing USMCA agreement.
Talks with China are also on the table, with Trump noting both sides are now within “the confines of a deal” as preparations for new negotiations ramp up.
This flurry of trade activity appears to cement a new Trump-era tariff strategy. The Japan deal may serve as a baseline, with future tariffs ranging from 15% to 50% depending on the strength of the trading relationship. That’s a significant shift from the 10% across-the-board “Liberation Day” tariffs Trump announced back in April.
Earlier in the week, the White House also confirmed new trade pacts with the Philippines and Indonesia, both of which will now see 19% tariffs on imports to the U.S., according to Yahoo Finance’s Ben Werschkul.
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