The US and Japan have agreed a trade deal days ahead of the latest tariff deadline set by Donald Trump.
Under the terms of the agreement, rather than all Japanese goods being hit with a 24% tax on entry to the US, they will instead be subject to a 15% tariff.
Significantly, and unlike the US-UK deal, there is no cap on the number of Japanese cars subject to the agreed lower tariff. The levy on cars and car parts has been brought down from 25% to 15%, making it the first country to secure a reduction in the blanket 25% rate on vehicles.
Cars make up more than a quarter of all Japan’s exports to the US.
Japanese steel and aluminium are still subject to a 25% tariff.
It’s just over a week until the 1 August pause on tariffs is due to end, itself a six-week extension to the 9 July 90-day freeze US President Trump announced in April.
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It’s seen a win for all parties as Japan is a major trading partner of the world’s largest economy.
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What is in the UK-US trade deal?
To make the deal happen, Japan agreed to a $550bn (£406bn) investment package of loans and guarantees from Japanese government-affiliated institutions in key sectors like pharmaceuticals and semiconductors.
Japan will also increase purchases of US agricultural products such as rice.
Market reaction
Markets welcomed the news.
In the US, the value of a dollar ticked up, and in Japan, the benchmark stock exchange, the Nikkei, gained sizably, and closed up more than 3.5%.
The index is comprised of many major carmakers, including Nissan, Honda, Mazda, Toyota, and Mitsubishi, which all rallied following the news.
Other Asian stock indexes closed up, including Korea’s Kospi, which rose nearly 0.44%, Hong Kong’s Hang Seng, which increased more than 1.6%, and Thailand’s SET index, which was up more than 2.3%.
It was the 18 April 2006, and he had landed by helicopter at St Andrew’s, on his way to survey a stretch of Aberdeenshire coastline he was going to turn into a golf course.
He duly delivered and “Trump International” is a stunning addition to Scotland’s golfing real estate, alongside his other course at Turnberry.
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He was the brand built on property and showbiz and, upon arrival, the star of TV’s The Apprentice breezed his way through our interview, obliging us by pointing down the barrel of the camera and delivering his trademark “you’re fired”.
We talked investment, Scottish roots and some local objections to the golf course.
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I said it was all a bit like the film Local Hero, which likened him to the rich guy played by Burt Lancaster and he seemed happy enough.
Innocent times.
Image: In 2006, the host of The Apprentice delivering his trademark ‘you’re fired’ finger point while visiting Aberdeenshire. File pic: PA
Image: Donald Trump promoting his plans for a golf course on the Menie Estate near Aberdeen in 2010
Fast forward 20 years to President Trump and we are braced for his latest return ‘home’. For this son of Scotland (his mother is from the Isle of Lewis), it’s a homecoming from hell. Hellish on security logistics, at least.
You might think a trip to the old country would carry an element of triumph, wrapped in a nation’s pride. He’s the prodigal who made president, after all – think Biden, Ireland, and the rock star welcome rolled out there for one of their own.
Not so for President Trump. The dynamic’s different with the Donald – the heartland he’ll visit isn’t loved up, it’s locked down. Same as it ever was, whenever he lands in Scotland.
Image: The US president at his Turnberry course in 2023 amid tight security. PA file pic
Image: File pic: PA
Hundreds of extra police officers have been drafted from around the country to hermetically seal his golf courses in Turnberry and Aberdeenshire. A private trip in two very public settings demands a huge security operation, complicated by an army of protestors mobilising for what they’re calling a “carnival of resistance”.
Demonstrations are planned over a range of causes – organisers cite “threats” to democracy, climate, the global economy and more.
Image: Protestors in 2023 gather at Trump’s Turnberry resort during his visit. File pic: PA
Image: Demonstrations, like this one in 2018, near Turnberry require policing. File pic: AP
Image: Comic Simon Brodkin, appearing in character as Lee Nelson, is led away by security during an anti-Trump protest at Turnberry in 2016. File pic: Reuters
There is no cause untouched by a president of the US and none forgotten by this weekend’s protests.
Scotland leans left of Donald Trump, and critics will lean into an effort to let him know.
It’s an awkward setting for a charm offensive by Prime Minister Sir Keir Starmer and Scotland’s First Minister John Swinney.
As the biggest show in politics rolls into town, they will polish the script on trade negotiations, wary of a president distracted, unpredictable and prone to changing the plot.
His distraction, of course, is the political drama back home.
Trump will welcome a weekend under the radar as an opportunity to escape the Jeffrey Epstein controversy, but there’s every chance the story will travel with him.
Daily efforts to steer the media away from the scandal haven’t stemmed the flow of persistent enquiry and revelations that cement Trump’s relationship with Epstein in the public consciousness, and so further raise questions of cover-up.
Donald Trump likes a wall. And now he has his very own 15ft-high metal barrier creating a fortress as he tees off for a weekend of politics, play and precision in Scotland.
An almost surreal contrast now exists in the tiny Ayrshire village of Turnberry.
On one side, the stunning coastline and luxury hotel that bears the president’s name. And on the other, an armed buffer zone with sniper teams and road checkpoints.
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The threat level and associated security on display is unprecedented following the attempted assassination of Trump at a campaign rally in the US.
“It would be inappropriate for me to plan an operation and not bear in mind what has happened,” the senior officer in charge of this weekend’s policing efforts told me.
Image: Military trucks are part of a security effort that comes just a year after an attempted assassination
Image: A ‘counter terror’ firm was spotted near the area, which is ringed by a 15ft fence
Turnberry, and its population of about 200 people, have this week witnessed a never-ending stream of Army trucks, terrorist sweeps, road checkpoints, airspace restrictions, sniper positions being erected and Secret Service agents roaming around.
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It is the most extensive security deployment in Scotland since the death of the late Queen in 2022.
It is estimated around 5,000 officers will be on the streets, with teams coming from across the UK to assist.
The spectacle primarily centres on Donald Trump coming to play golf before the arrival of Prime Minister Sir Keir Starmer for talks, likely on Monday.
The president, whose mother was born on the Scottish island of Lewis, is then scheduled to travel to his Aberdeenshire resort where a new golf course is set to open.
Image: Police on buggies are patrolling near the course on Scotland’s east coast
Image: Police have even taped off a clothes recycling bin near the course
‘Trump is a decent boss’
Stephanie Campbell and Leanne Maxwell live in Turnberry and used to work at the Trump-owned resort, like many other locals.
The pair told Sky News the very first lesson staff at the resort are given is not in fine service or guest etiquette, but in how to respond to a bomb threat.
It is claimed there are posters above the landline phones in the hotel with instructions on the worst-case scenario.
Image: Stephanie Campbell and Leanne Maxwell say staff are trained in dealing with bomb threats
Stephanie told Sky News: “I had no issues working for him, he is a really decent boss.
“The last time he came there was an element of excitement, I think this time there comes with an added element of concern.
“It brings a lot higher threats and security and it’s much more difficult for everybody in the area.”
Image: Mr Trump at Turnberry in 2018 – he will also visit his Aberdeen course on this trip. Pic: AP
Image: File pic: Reuters
Echoing her concerns, Leanne told Sky News: “Security is obviously being bumped up. It’s quite worrying. He’s quite a man, ain’t he?”
Sweeps of the rooms are carried out by US Secret Service agents after housekeeping staff complete their duties and Trump’s meals, they say, are prepared by a personal chef to avoid the risk of poisoning.
To the outside world, these measures seem standard for a US president. But to those who live in Turnberry, it’s far from normal when they have a date with the commander-in-chief.
Image: Marine One is in place awaiting the president’s arrival
Image: File pic: Reuters
Awkward encounters
Prestwick Airport has become something of an American airbase in recent days.
The infamous armoured limousine, known as “The Beast”, has been spotted being wheeled out of a US military plane as the presidential motorcade prepares for his arrival tonight.
Greeting the president at the doors of Air Force One will be the secretary of state for Scotland, Ian Murray, who previously supported a motion alleging Trump was guilty of “misogynism, racism and xenophobia”.
Another awkward encounter could come in the form of Scottish First Minister John Swinney’s showdown with Mr Trump next week.
The SNP leader, who publicly backed Kamala Harris in the presidential race, called for September’s state visit to be scrapped after the Ukrainian president’s visit to the White House descended into a shouting match live on TV earlier this year.
Demonstrations are planned throughout the weekend, with marches and protests announced in Glasgow, Edinburgh and Aberdeen.
Kirsty Haigh, from Scotland Against Trump, claims the president uses Scotland to “cleanse his image” and he should not be able to use the country as an “escape” from his views.
She told Sky News: “He should not be welcomed by us, by our leaders.
“We want to see a Scotland that is very different than [the] America that’s being created.”
The Epstein files are increasingly consuming the Trump administration, while Ghislaine Maxwell, Jeffrey Epstein’s co-conspirator and accomplice, has met Department of Justice officials and been ordered to appear before a congressional committee.
This, as the Wall Street Journal continues to reveal the alleged extent of Donald Trump’s relationship with the convicted sex offender.
Meanwhile, the president is due to arrive in Scotland to honour his mother, play golf, and meet Sir Keir Starmer and Scottish First Minister John Swinney.
If you’ve got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.