The Dow Jones (DJIA) is set to open Wednesday’s trading session in the green after President Trump announced trade deals with Japan and Indonesia. Japan was the fifth-largest U.S. goods trading partner in 2024.
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For Japan, the U.S. will lower its tariff on imported goods to 15% from 25%. The tariff on auto imports will drop to 15% from 27.5%. Auto exports accounted for 28.3% of Japanese exports to the U.S. in 2024.
On Truth Social, Trump added that Japan agreed to invest $550 billion into the U.S., “which will receive 90% of the Profits.” Tokyo will also ease trade barriers for vehicles, rice, and other agricultural products.
Trump Signs Trade Deal with Indonesia
As for Indonesia, the U.S. will drop its tariffs to 19% from 32%. In exchange, Indonesia will eliminate “99% of their Tariff Barriers” and set tariffs on U.S. goods at 0%, said Trump. In addition, Indonesia has agreed to supply the U.S. with critical minerals and purchase U.S. farm products, energy, and Boeing (BA) aircraft.
The Dow Jones ETF (DIA) is up by 0.57% at the time of writing.
