Washington, D.C. — July 23, 2025
US President Donald Trump speaks during a news conference with Japanese Prime Minister Shigeru Ishiba at the White House, in Washington, DC, on February 7, 2025 [Evan Vucci/AP]
President Donald Trump declared a landmark trade agreement with Japan late Tuesday, hailing it as "perhaps the largest Deal ever made" and a major victory for his "America First" economic agenda. The deal—reached after weeks of tense negotiations—averts threatened 25% tariffs on Japanese goods and reshapes critical aspects of the $230 billion bilateral trade relationship.
Key Details of the Agreement
- Reciprocal Tariffs: 15% tariff on Japanese imports replaces the 10% rate. Japan will match the U.S. tariff rate.
- Auto Tariff Reduction: U.S. reduces auto tariffs from 25% to 15%. Japanese carmakers benefit after a 26.7% export drop in June.
- Market Access: Japan to open market for U.S. rice, trucks, automobiles, and agriculture.
- $550 Billion Japanese Investment: Trump claims the U.S. will "receive 90% of the Profits."
Economic and Political Implications
- Markets React: Nikkei 225 up 2%, auto stocks surge. Yen strengthens.
- U.S. Job Gains: Trump predicts hundreds of thousands of jobs.
- Relief for PM Ishiba: Deal offers political breathing room amid calls for resignation.
Unresolved Questions and Next Steps
- LNG Venture: Japanese investment in Alaska LNG pipeline also announced.
- Profit and Project Details: Trump offers no clarity on profit-sharing mechanism.
- Upcoming Talks: EU trade negotiators arrive in D.C. on Wednesday.
Reactions:
Japan’s negotiator Ryosei Akazawa tweeted "#Mission Accomplished". Economists called the new tariff levels "a relief," but warned of inflation risks globally.
— Reporting compiled from CNN, BBC, CNBC, Reuters, The Guardian, CBS, and Al Jazeera
Published by: WSN 024