President Donald Trump on Tuesday claimed the United States reached a major trade agreement with Japan, slashing previously threatened tariff rates to 15% on all Japanese imports. The deal, if implemented, would replace a proposed 25% tariff set to take effect August 1.
Trump revealed the deal on Truth Social, adding that Japan had agreed to invest $550 billion in the U.S., with the U.S. “receiving 90% of the profits.” Details of the investment and its mechanisms remain unclear.
The agreement follows months of tension, with Japan’s top trade negotiator visiting the U.S. repeatedly. On Tuesday, Ryosei Akazawa posted a photo from his White House meeting, appearing to confirm the deal. Shares of Japanese automakers like Toyota and Honda surged on the news.
The deal includes so-called “reciprocal tariffs,” with both sides agreeing to 15% duties. U.S. imports from Japan totaled $148 billion in 2024, meaning the new tariffs could generate over $22 billion annually in revenue.
Critics, including the American Automotive Policy Council, warned the plan may hurt U.S. auto workers if foreign-made vehicles receive better rates than North American-built ones.
The White House also touted upcoming agreements with the Philippines and Indonesia, both of which include 19% tariffs. Trump said Japan and the U.S. are near a second deal involving a liquefied natural gas joint venture in Alaska.
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