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Trump's Trade Deal With Japan A Tax On Americans — Economist Says, 'Not Remotely Optimistic' US Auto Companies Will Gain As Toyota And Honda Stocks Rally

Economist Justin Wolfers is pushing back against the narrative surrounding President Donald Trump’s new trade agreement with Japan, arguing that the deal essentially results in a tax increase for American consumers.

What Happened: On Thursday, in a post on X, Wolfers addressed what he refers to as a “confusion in the reporting” of Trump’s latest trade deal with Japan. “So let me clarify,” he says, accompanied by a video of his recent appearance on MSNBC.

In the clip, Wolfers says, “the most important thing for viewers to think about is the framing. So if you began by saying that [the] tariff on Japan has gone from 25% to 15%, it would feel like he'd negotiated a great deal. That's not what happened here.”

See Also: Chrysler, Jeep Parent Company Stellantis Expects $2.7 Billion Net Loss In First Half Of 2025 As Trump Tariffs Cause Uncertainty

Wolfers notes that the tariffs on Japanese imports were previously just 2%, “so the biggest thing Trump has done is he's raised taxes on Americans who import goods from Japan from 2% to 15%.”

The deal's potential impact on U.S. automakers is also in question, as Wolfers pushed back against claims ...