US President Donald Trump has announced that the United States has reached a sweeping trade agreement with Japan, calling it a “massive” deal with one of America’s leading trade partners.
According to a statement Trump posted on social media, the agreement will see Japan commit $550 billion in investments to the US, while also agreeing to a 15% reciprocal tariff. Trump also noted that Japan would further open its market to US exports, including automobiles, trucks, rice, and other agricultural goods.
“I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan,” said Trump at a White House.
Ryosei Akazawa, Japan’s chief trade negotiator, confirmed the development in a post on Facebook, mentioning a visit to the White House and tagging it with “Mission accomplished.”
Trump also revealed that a trade pact with the European Union is on track to be announced on Wednesday, with additional bilateral deals anticipated in the near future.
Earlier in the month, the White House sent a letter to Japan threatening tariffs of 25% on the nation’s exports to the US should the two sides fail to finalize a new deal before August 1. This rate stands a percentage point higher than the 24% tariff floated by Trump during his “Liberation Day” speech on April 2.
Japanese vehicle imports into the US, like those from other countries, have long faced 25% tariffs. Following reports by broadcaster NHK that these existing tariffs could be reduced for Japanese carmakers, shares surged for automotive giants such as Toyota, Nissan, and Honda.
