World
Trump Announces $550 Billion Trade Deal with Japan
By Jake Beardslee · July 23, 2025
President Donald Trump has unveiled what he described as a “massive” trade agreement with Japan, claiming it will generate $550 billion in investment for the U.S. economy and deepen ties between the two nations.
“This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan,” Trump wrote on Truth Social.
The deal, finalized days ahead of Trump’s August 1 tariff deadline, marks the most consequential of several ongoing trade negotiations. Under the agreement, Japan will pay a 15% tariff on goods exported to the U.S., down from the previously slated 25%, while also opening up its markets to more American goods, including automobiles and rice.
Japanese vehicles, which make up more than a quarter of Japan’s exports to the U.S., will also see their import tariff cut from 25% to 15%. The news spurred a surge in Japanese markets. The Nikkei rose 2.6% to a one-year high, while shares of Toyota jumped over 11%. Honda and Nissan saw gains of more than 8%.
Despite the celebration, the deal has raised concerns among U.S. automakers, who argue it favors Japan while leaving the 25% tariffs on vehicles from Canada and Mexico unchanged.
At a White House event Tuesday, Trump told attendees, “I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan,” adding, “It’s a great deal for everybody.”
Ryosei Akazawa, Japan’s chief trade negotiator, celebrated on Facebook, posting a photo at the White House with the hashtag “#Mission Complete.”
In Tokyo, Japanese Prime Minister Shigeru Ishiba said he had received initial reports but would not comment on specifics. Facing mounting domestic pressure over inflation and recent electoral losses, Ishiba said it was too early to say how the agreement would affect his political future.
Japan, the fifth-largest U.S. trading partner in goods and its largest investor, had $230 billion in two-way trade with the U.S. last year and ran a $70 billion surplus.
The White House continues its push for trade deals with other countries as the August 1 tariff deadline looms. Framework agreements have already been announced with Britain, Vietnam, and Indonesia, while tensions with China have cooled following a temporary pause in retaliatory tariffs. Trump said negotiators from the European Union were due in Washington on Wednesday.