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Home News Business

Trump announces sweeping Japan trade deal with $550B investment by Tokyo

July 23, 2025
in Business, News, Politics
Trump announces sweeping Japan trade deal with $550B investment by Tokyo
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President Trump announced Tuesday that his administration had wrapped up a massive trade agreement with Japan, two weeks after threatening the US ally with 25% tariffs

“We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits,” Trump, 79, wrote on Truth Social.

“Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%.”

Donald Trump at a podium in the White House.
The United States and Japan have settled and agreed on a massive trade agreement. AFP via Getty Images
Prime Minister Shigeru Ishiba at a press conference.
President Trump took to Truth Social to celebrate the occasion and said, “Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits.” via REUTERS

On July 7, Trump told Japanese Prime Minister Ishiba Shigeru his country would pay a 25% duty on exports to the US if a deal wasn’t wrapped by Aug. 1.

The United States had a $69.4 billion trade deficit with the island nation in 2024, according to the Census Bureau.

President Donald Trump shaking hands with Japan's Prime Minister Shigeru Ishiba at the White House.
Trump previously told Japanese Prime Minister Ishiba Shigeru his country would have to pay a 25% tariff to the U.S. if a trade deal wasn’t agreed upon by Aug. 1. REUTERS

Japan is the fifth-largest US trading partner among individual nations, trailing Mexico, Canada, China and Germany.

The deal was announced after Japan’s chief tariff negotiator Ryosei Akazawa held extended talks with Commerce Secretary Howard Lutnick and met briefly with Treasury Secretary Scott Bessent, according to The Japan Times.

Trump announced another “tough” trade deal with the Philippine President Ferdinand “Bongbong” Marcos Jr. during an Oval Office meeting on Tuesday, in which 19% reciprocal tariffs were outlined.

Trucks waiting to load containers at a Tokyo port.
Japan ranks fifth among being the largest trade partner of the United States. AFP via Getty Images

Indonesia also inked a deal with the Trump administration to secure a 19% reciprocal tariff Tuesday — one week after the president threatened to levy a 32% rate.

The administration is hoping to sign dozens more trade deals before Trump’s August 1 deadline.

Representatives from the European Union will be in Washington, DC, on Wednesday for trade talks, the president said Tuesday.

With Post wires.

The post Trump announces sweeping Japan trade deal with $550B investment by Tokyo appeared first on New York Post.

Tags: Donald TrumpJapanTariffsTokyotrade
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