Former U.S. President Donald Trump has announced a major trade agreement with Japan, calling it the “largest trade deal in history.” The deal, signed Tuesday night, includes a 15% reciprocal tariff on Japanese goods entering the U.S., with the same rate extended to Japanese automobiles and auto parts—lower than the 25% levy applied to other exporters.
As part of the agreement, Japan will invest $550 billion in the U.S. economy, primarily in key sectors like pharmaceuticals and semiconductors. Trump claimed the U.S. would receive “90% of the profits” from these investments. The deal also opens Japan further to U.S. agricultural exports, including rice, while ensuring Japanese agriculture remains protected.
Japanese markets reacted positively, with the Nikkei surging 3.7% following the announcement. Japanese trade negotiator Ryosei Akazawa called it a historic breakthrough, highlighting Japan’s unprecedented tariff advantage on autos. Prime Minister Shigeru Ishiba praised the deal’s potential to strengthen bilateral cooperation and job creation.
While key areas such as steel and aluminum remain under discussion, the agreement marks a turning point in U.S.–Japan trade relations after months of tense negotiations.
Experts noted the deal benefits both sides—Japan avoids harsh tariffs, while U.S. exporters gain better access to Japan’s market.
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