U.S.–Japan Sign Landmark Trade Deal: Tariffs Reduced and $550 Billion in Japanese Investments

U.S. President Donald Trump has announced a new trade agreement with Japan that sets "reciprocal" tariffs at 15%, down from the previously threatened 25%. The deal, revealed in a post on Truth Social, also includes a commitment by Japan to invest $550 billion in the United States, with 90% of the profits reportedly going to the U.S.—though further details were not provided.
Among the key elements of the agreement is Japan’s pledge to open its markets to U.S. goods, including automobiles, trucks, rice, and other agricultural products. Crucially for Tokyo, the Japanese government secured a reduction in tariffs on its auto exports to the U.S., from 25% to 15%, easing pressure on a cornerstone of the country’s economy.
Speaking at a meeting at the White House, Trump called the accord “the largest trade deal in history,” and announced that Japan would also enter a joint venture for liquefied natural gas (LNG) exports from Alaska—an initiative long pursued by the U.S. energy sector.
Japanese Prime Minister Shigeru Ishiba confirmed the deal, emphasizing that his government was committed to protecting national interests. Chief negotiator Ryosei Akazawa celebrated the outcome on social media. However, tariffs on steel remain unchanged at 50%.
Auto tariffs had been one of the main sticking points in the months-long negotiations between the two countries. Markets reacted positively to the announcement: Japan’s Nikkei index closed up 3.5%, and Toyota shares surged by 14%, as investors viewed the deal as less damaging to Japan’s economy than initially feared. Automobiles remain one of Japan’s leading exports.

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Source: The Wall Street Journal