Trump announces 'massive' trade agreement with Japan, citing reciprocal tariffs

President Donald Trump has announced a "massive" trade agreement with Japan, as stated on his platform Truth Social. Trump indicated that the two nations have agreed upon "reciprocal" tariffs of 15 percent, a reduction from his previous demand of 25 percent. This announcement reportedly led to a sharp rise in the Tokyo stock market.

Trump further declared that Japan would invest 550 billion dollars in the United States at his "instruction," with 90 percent of the profits remaining within the U.S. and projected to create hundreds of thousands of jobs. He described the agreement as unprecedented, asserting that Japan would open its markets to various products, including cars, trucks, and rice.

Approximately two weeks prior to this announcement, the former U.S. president had communicated to Japan, via letter, his intention to impose 25 percent tariffs on all products imported from the Asian economic nation starting August 1. This new agreement signifies a reduction of that proposed tariff rate to 15 percent.

However, uncertainty remains regarding the impact on sector-specific tariffs on cars and car parts, which are currently at 25 percent, according to the Japanese business newspaper "Nikkei" following Trump's announcement. Japan's chief negotiator, Ryosei Akazawa, had reportedly focused on lowering car tariffs, given its status as Japan's largest export sector in trade with the U.S. Trump has previously sent tariff letters with varying rates to different countries, and a similar tariff conflict with the European Union remains unresolved.

This article was translated to English using an AI tool.

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