Japan Secures Lowest US Chip Pharma Tariffs in Trade Deal

Japan has secured a trade deal with the United States that ensures it will always receive the lowest tariff rates on semiconductor chips and pharmaceuticals compared to other U.S. trade agreements. The agreement includes lowering tariffs on cars and other goods to 15%, matching the European Union's recently established baseline tariff rate, and is tied to a $550 billion Japanese investment package in the U.S. Japan's lead trade negotiator, Ryosei Akazawa, emphasized that if any third country negotiates lower tariffs with the U.S., Japan will benefit from those lower rates as well. Japan is prioritizing the signing of an executive order by President Donald Trump to implement the agreed tariff reductions before issuing any formal joint statement. Meanwhile, the Philippines is negotiating its own zero-tariff deal with the U.S. on several products, including wheat, vehicles, soy, and pharmaceuticals, which is expected to lower consumer costs despite some potential revenue losses. Philippine Finance Secretary Ralph Recto believes this deal will be beneficial overall, given the country's already low tariff rates and the importance of the U.S. as its largest export market.