Japan-US trade deal estimated to boost Japan's economy by 0.8%

US President Donald Trump and Japan's Prime Minister Shinzo Abe upon arrival for a luncheon at the Kasumigaseki Country Club Golf Course in Kawagoe, Saitama, outside Tokyo on November 5, 2017.

Attribution: Jim Watson | AFP | Getty Images

The trade deal reached between Japan and the United States is expected to boost Japan's economy by about 0.8%, the Japanese government said on Friday.

The deal is also estimated to contribute about 4 trillion yen ($36.84 billion) to Japan's gross domestic product based on its fiscal 2018 GDP and the pact will create about 280,000 jobs in Japan, it said.

The United States and Japan signed a limited trade deal that cuts tariffs on U.S. farm goods, Japanese machine tools and other products while further staving off the threat of higher U.S. car duties.

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