Trump has reached a trade deal with Japan, it looks like the US will impose a 15% blanket tariff on Japanese imports. Unclear if Japanese automobiles or steel imports are also covered by this as the automobile and steel tariffs are 25% and 50% respectively.
Japan also promised that they will invest $550 billion in the US and that Japan will open its market to US-made “Cars and Trucks, Rice and certain other Agricultural Products, and other things.”
I'm not an economist or a financial guy by any means But Japan has no tariffs on US cars. US made cars are just not competitive and it's too big for Japanese roads and it's LHD not RHD.
How will they force japan to buy more US vehicles?
Japanese vehicles will be more expensive but then US auto makers will increase the prices of their own cars to match.
Additionally wouldn't a blanket tariff on Japanese goods also make it more expensive to manufacture in the US to export to other countries since they need to pay more for Japanese sub components. They can buy less Japanese substitutes and use US made sub components but there's a reason why those US sub components were not used initially?
This just decreases Japanese exports to the US. Hurts japan economy more in the long run.
I do have to applaud trump for managing to squeeze these concessions out of allies. But is it really the best way to bring manufacturing back to the US?
China didn't become a manufacturing powerhouse just by tariffs alone, they did massive infrastructure investment, ToT, education etc. Tariffs were only a small part of chinas plan.