Washington/Tokyo – Former U.S. President Donald Trump has unveiled a landmark trade agreement with Japan, calling it a “massive deal” that will bring $550 billion in Japanese investments into the United States. The announcement was made during a press briefing in Washington on Tuesday, with Trump hailing the agreement as a “historic win for American workers and industries.”
Under the deal, the United States will reduce auto tariffs from 27.5% to 15%, averting a previously scheduled tariff hike of 25% on Japanese imports set to take effect on August 1. In exchange, Japan has committed to:
- Purchasing 100 Boeing aircraft
- Increasing defense purchases from U.S. contractors to $17 billion annually
- Injecting billions into U.S.-based supply chains in key sectors such as semiconductors, pharmaceuticals, and clean energy
The agreement has already begun to impact global markets, with Japan’s Nikkei Index surging nearly 4% in response. Shares in leading Japanese automakers, including Toyota and Honda, climbed significantly following the news.
While the deal has been widely praised by Trump supporters as a strategic economic and diplomatic achievement, some U.S. automakers and labor groups have expressed concern. They fear that lower tariffs on Japanese cars could hurt domestic manufacturers by increasing competition without reciprocal protections.
Japan’s lead trade negotiator, Ryosei Akazawa, is expected to visit Washington next week for final talks to solidify the framework before the tariff deadline.
The deal comes amid a broader push by Trump to renegotiate trade terms with key U.S. allies. Similar discussions are reportedly underway with South Korea, the European Union, and ASEAN countries, as Trump signals a return to aggressive economic diplomacy.
If fully implemented, the Japan deal would mark one of the largest bilateral trade agreements in modern history.
This story has been reported by PakTribune. All rights reserved.