Japan has a trade deal with US, at least according to President Donald Trump after he declared a “massive” agreement under which Tokyo will pay a 15% tariff on its exports to the US, open its market to American cars, trucks, rice, and other farm goods, and invest $550 billion in the US, with Washington “receiv[ing] 90% of the Profits.”
“There has never been anything like it,” he wrote on Truth Social.
Trump said the 15% levy replaces the 25% duty he had threatened if Tokyo balked. Japanese autos—already hit with a separate 25% tariff since April—would drop to 15%, including the standing 2.5% rate, affecting key carmakers like Toyota, Honda, and Nissan.
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In Wednesday’s Asian session, Toyota surged more than 14%, Nissan by 8%, and Honda by 11%. The Nikkei 225 rose 3.5%.
However, further details were not immediately available. Japanese Prime Minister Shigeru Ishiba said he received only an initial briefing from chief negotiator Ryosei Akazawa and will “examine [the details] carefully.”
On energy, it is reported that Tokyo will enter a joint venture for LNG exportation in Alaska—an idea the administration and the gas industry have floated for years. First Squawk added that Ishiba says the $550 billion “comprises both loans and investments.”
So far, the White House claims framework accords with Britain, Vietnam, the Philippines, and Indonesia, plus a tariff rollback “truce” with China, while several remain rough sketches. The administration is also meeting the EU on Wednesday to avert August 1 tariffs.
The deal is poised to play well with each country’s politics. Japan just held national elections Sunday, and voters signaled little appetite for big concessions. Ishiba used the negotiations to justify clinging to office after heavy parliamentary losses. In Washington, Trump framed the moment as proof of his dealmaking brinkmanship: “I was sitting there, screaming back and forth with Japan… Can you imagine Biden doing this?”
The bilateral imbalance remains Trump’s talking point, with the US running a $63 billion deficit with Japan last year.
Information for this briefing was found via The New York Times and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
