Wednesday, July 23, 2025 - President Donald Trump has announced a trade deal with Japan, in which Japan will pay a 15 percent reciprocal tariff on Japanese products exported to the United States.
"I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan," Trump touted at a White House event on Tuesday evening. "They had their top people here, and we worked on it long and hard. And it's a great deal for everybody. I always say it has to be great for everybody. It's a great deal," he added.
Through the Truth Social post, Trump said that as part of the deal, Japan will invest 550 billion dollars in the United States, adding that the U.S. will receive 90 percent of the profits.
He said the deal will create hundreds of thousands of jobs and that Japan will open its markets for cars and trucks, rice and certain agricultural products, among other items.
Speaking to reporters on Wednesday, Japan's Prime Minister Shigeru Ishiba said: "As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement."
In a letter sent to Japan this month, Trump threatened a 25% tariff on the country's exports to the US if there wasn't a new trade deal struck before 1 August. That was one percentage point higher from the 24% rate announced during his so-called Liberation Day on 2 April.
The April tariffs plan, which included duties on many US trading partners across the globe, were paused for 90 days following worldwide market turmoil. It allowed Tokyo's trade representatives time to negotiate with their counterparts in Washington.
Japan's benchmark share index, the Nikkei 225, was more than 2.5% higher on Wednesday morning in Tokyo.
Shares in motor industry giants - including Toyota, Nissan and Honda - jumped after broadcaster NHK said existing tariffs on Japanese carmakers would be cut.
Prime Minister Shigeru Ishiba later confirmed that the country's carmakers would now face a 15% tariff on exports to the US, down from 25%.
0 Comments