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Early Morning with Dave
The USA and Japan Ink a Trade Deal and Markets Cheer - Investors See the EU as Next

The USA and Japan Ink a Trade Deal and Markets Cheer - Investors See the EU as Next

U.S.-Japan deal still leaves Japan facing a 15% tariff…

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David Rosenberg
Jul 23, 2025
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Early Morning with Dave
Early Morning with Dave
The USA and Japan Ink a Trade Deal and Markets Cheer - Investors See the EU as Next
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Highlights

• U.S.-Japan deal still leaves Japan facing a 15% tariff…

• …while rumors swirl of an EU deal and an extended truce with China

• Economists have increased their recession odds

• Wall Street strategists have radically changed their projections

Key Takeaways

• Japan Makes Big Concessions to Get a Deal: The big news overnight was this big beautiful trade deal between the United States and Japan — which the President boasts will include $550 billion of Japanese investments. Japan agreed to buy 100 Boeing aircraft, purchase American agricultural products, and hike defense spending via contracts with U.S. firms. What did Japan get back? A 15% tariff rate (including autos) instead of 25%.

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