U.S. President Donald Trump stated that trading partners could reduce the tariffs imposed by the United States through investments like Japan.
On the 24th (local time), President Trump responded to a question at the construction site of the Federal Reserve building in Washington, D.C., asking, 'Can other countries also pay money to lower tariffs?' by saying, 'Yes. I will allow other countries to pay money to lower tariffs (buy it down).'
This statement came during the explanation to reporters about Japan's commitment to invest $550 billion in the U.S. as part of the U.S.-Japan trade agreement. Japan lowered the reciprocal tariffs and the automotive tariff rates from the previous 25% to 15%, respectively, through trade agreements with the United States.
President Trump described Japan's investment in the U.S. as a 'signing bonus.' A 'signing bonus' refers to money paid in advance at the time of signing a contract.
He noted, 'Japan gave us $550 billion and lowered the tariffs slightly. Then Japan agreed to open its entire economy (market) to everyone. This wasn't easy,' adding, 'The economic opening is worth more than the $550 billion Japan paid. So by combining the economic openings and payments, we lowered the tariff rates to 15%.'