US President Donald Trump on Tuesday declared a “massive” trade agreement with Japan, stating that the deal would bring in $550 billion worth of Japanese investment into the United States and introduce a 15% reciprocal tariff.
In a message posted on Truth Social, Trump said the agreement would open Japan’s market to US exports, including cars, trucks, rice, and select agricultural products. He highlighted the expected economic impact, saying the deal would generate hundreds of thousands of jobs and ensure 90% of the profits would go to the US.
Trump said, “We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.”
Earlier this month, Trump had issued a warning to Tokyo in a letter, threatening to impose a 25% tariff on its exports to the US beginning August 1. The proposed rate marked a slight increase from the 24% tariff introduced during the April 2 “Liberation Day” measures.
In the Truth Social post, the US president added, “Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%.”
According to a report by the Asahi newspaper, the deal was finalized after a meeting between Trump and Japan’s chief tariff negotiator, Ryosei Akazawa, at the White House. Akazawa also held talks with US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent.
Japanese automobile exports to the US, which currently face a 25% tariff, represent a major component of Japan’s overall trade with the US. Customs figures show that vehicle exports accounted for 28.3% of Japan’s total shipments to America in 2024.
Trump, while sharing details of the deal, said, “This is a very exciting time for the US, and especially for the fact that we will continue to always have a great relationship with the Country of Japan.”
