Trump Announces Major Trade Deal With Japan, Slashes Tariffs And Secures $550 Billion Investment

Trump Announces Major Trade Deal With Japan, Slashes Tariffs and Secures $550 Billion Investment

Washington, July 22 (local time) - Former U.S. President Donald Trump announced via his social media platform, Truth Social, that the United States has reached a major trade agreement with Japan. Under the deal, a planned 25% reciprocal tariff will be reduced to 15%, and Japan will open its markets to American agricultural goods, including rice. Additionally, Japan has agreed to invest $550 billion in the U.S.

Trump described the deal as "tremendous" and possibly the largest ever made. "Under my direction, Japan will invest $550 billion in the United States, with 90% of the profit going to America," Trump wrote. "This agreement will create hundreds of thousands of jobs."

The former president emphasized that Japan would open its market to a broader range of U.S. exports, including automobiles, trucks, rice, and other agricultural and industrial products. He added that Japan would pay a 15% reciprocal tariff as part of the agreement.

Trump also revealed that the two countries are working on a separate agreement related to liquefied natural gas (LNG). According to Trump, Japan is planning to establish a joint LNG venture with the U.S. in Alaska.

Japanese Government Welcomes Deal as Outcome of "Tough Negotiations"

Following Trump's announcement, a Japanese government official confirmed Japan's approval of the deal, noting that it was the result of persistent negotiations led by Economic Revitalization Minister Ryosei Akazawa.

"While the details are still unclear, if finalized, this would be a positive outcome for U.S.-Japan relations and could ease public concerns in Japan," the official said. However, they added that Japan's business community will likely scrutinize the 15% tariff figure.

Japanese Prime Minister Shigeru Ishiba told reporters on July 23 that he would seek a detailed briefing from Minister Akazawa and would consider holding a phone or in-person meeting with Trump if necessary.

Japanese Stocks Surge on News of Trade Agreement

Following the announcement, Japanese stock markets rallied sharply. The Nikkei 225 index jumped more than 800 points from the previous day's close during early trading on July 23.

Background: Earlier Tariff Threat

Earlier this month, on July 7, Trump posted letters on his social media platform addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung. In the letters, he announced that starting August 1, 2025, the U.S. would impose a 25% tariff on all Japanese and South Korean imports.