Trump Announces “Massive” Trade Deal With Japan

15% reciprocal tariffs, $550B investment, and relief for automakers headline the deal.

Photo via The White House on X

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President Trump on Tuesday unveiled what he called “the largest trade deal in history” with Japan, establishing new 15% reciprocal tariffs on Japanese imports and securing a $550 billion Japanese investment into the U.S. economy. (CNN)

The agreement, reached after weeks of tense negotiations, replaces Trump’s earlier threat of a 25% tariff on Japanese goods.

The deal offers Japan a crucial break on auto and auto part levies, aligning them with U.S. rates and lifting restrictions that had impacted the country's massive car export industry. In return, the U.S. gains expanded access to Japanese markets for American rice, trucks, and other goods. (WSJ)

A Strategic Partnership and Political Win

Trump hailed the deal as a “great win” for American workers, saying on Truth Social that “Japan will pay Reciprocal Tariffs to the United States of 15%” and calling the agreement a “very exciting time” for U.S.-Japan relations.

Japanese Prime Minister Shigeru Ishiba praised the outcome as “the lowest figure to date for a country that has a trade surplus with the United States.” (CNN)

What’s Next for U.S.–Japan Trade?

While the deal marks a major breakthrough, it doesn’t settle everything. Tariffs on Japanese steel and aluminum remain at 50%, and Tokyo has expressed concern about future U.S. efforts to curb its trade ties with China. Still, both governments emphasized that Tuesday’s agreement is only the beginning. (WSJ)

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Inside the Japan Deal: Tariffs, Trade Signals, and Who’s Really Winning

🔐 Become a Pro Subscriber to unlock today’s Pro Brief and explore how Trump’s trade deal with Japan is reshaping U.S. alliances, where the $550 billion investment is headed, and why American automakers aren’t all celebrating the news.