Trade and Tariffs news US President Trump announced that they completed a massive deal with Japan, which he said is perhaps the largest deal ever made with Japan to invest USD 550bln into the US and will open their country to trade including cars and trucks, rice and certain other agricultural products, and other things. Trump added that Japan will pay reciprocal tariffs to the US of 15% and is forming a JV with the US in Alaska and they are going to make a deal on LNG. Japan's top trade negotiator Akazawa said they were able to reach an agreement that is beneficial to both countries and struck a deal with the US after a 70-minute meeting with President Trump, while he added that steel and aluminium are not included in the tariff deal. Japanese PM Ishiba confirmed they agreed with the US to lower tariffs with auto tariffs lowered to 15% and will continue working closely with the US. Ishiba said the deal does not include lowering tariffs on Japan's agricultural products, while Japan will raise the portion of rice imports from the US within the minimum access framework. BoJ Deputy Governor Uchida says US-Japan trade agreement is a big progress and will reduce uncertainty over Japan's economic outlook; will reflect trade agreement in economic outlook report; uncertainty remains on tariff impact. There is always upside and downside risks to the outlook. Japan trade deal roughly falls in line with assumptions BoJ made in projections at prior quarterly report on May 1st; at present, must support the economy through accommodative monetary policy. US President Trump said Europe is coming to Washington for trade talks on Wednesday. US President Trump said we are going to get drug prices down and drug companies will have a lot of problems if they don't agree, while he added that they will use import restrictions to force foreign suppliers to cut drug prices. China's Commerce Minister held a video call with the EU's trade chief and had candid and in-depth discussions, while they discussed China and EU trade cooperation and issues, as well as EU sanctions on Chinese firms and China lodged solemn representations over sanctions. US President Trump will meet UK PM Starmer during his weekend trip and they will seek to formalise a trade deal. Brazilian Finance Ministry official Durigan said they have been working on a plan to protect themselves from potential 50% taxation by the US, and the work has not been completed, while they have tried to do everything possible to reverse the 50% tariff by the US and have been looking at the possible need to help Brazilian companies due to US tariffs which will be done with the least possible fiscal impact. Chinese Commerce Ministry confirms Chinese Vice Premier He Lifeng is to hold talks with the US; VP is to visit Sweden between July 27-30th. Germany and France are to push the EU prepare trade retaliation against the US, unless it makes compromises. (FT) Source: Newsquawk(zerohedge)