Trump announces ‘massive’ trade deal with Japan

BREAKINGBREAKING,

Following months of tense negotiations, US President Donald Trump has announced that he has reached a “massive” trade agreement with Japan.

Trump said that the US will impose a 15% tariff on Japanese exports under the deal, and that it will also allow Japan to invest $550 billion in the US.

Trump stated on his Truth Social platform, “We just completed a massive Deal with Japan, which is probably the largest deal ever made.”

“Japan will invest $550 billion dollars into the United States, which will receive 90% of the profits,” I assure you.

According to Trump, Japan will allow the US to export cars, rice, and other agricultural products, adding that the agreement will result in “hundreds of thousands of jobs.”

He wrote, “There has never been anything like it.”

Trump stated that the agreement was a “great deal for everyone” at a reception later on Tuesday.

He said, “I always believe it must be fantastic for everyone.”

I can tell you that it’s a fantastic deal, which is a lot different from previous ones.

If Trump failed to reach a deal by the deadline of August 1st, Japan would be subject to a 25% tariff.

Trump’s base tariff of 10% has been applied to Japanese exports up until now.

Trump’s 25 percent tariff on cars and 50 percent tariffs on steel and aluminum, which had been a sticking point in Washington and Tokyo negotiations, was not made public, but NHK, Japan’s public broadcaster, reported on Wednesday that the rate on auto exports would be set at 15 percent.

The deal was hailed as a “historical agreement,” according to US Treasury Secretary Scott Bessent.

As we approach the new Golden Age under President Trump, Bessent said, “I’m happy to reaffirm our commitment to deepen this long-standing alliance and laying the foundation for the next chapter of US-Japan cooperation.”

The agreement was not immediately confirmed by the Japanese government.

Following Trump’s announcement, Japanese stocks increased, with the benchmark Nikkei 225 rising by about 2% in early trading.

Following preliminary agreements with the UK, Indonesia, Vietnam, and the Philippines, as well as a 90-day trade pact with China, Trump’s announcement is possibly one of his most significant trade deals so far.

The fifth-largest trading partner of the US is Japan, the fourth-largest economy in the world.

According to the US Census Bureau, the US imported $ 148.2 billion worth of Japanese goods in 2024, while $ 79.7 billion of US goods were purchased by Japan.