President Donald Trump announced a major trade agreement with Japan on Tuesday, calling it one of the largest deals in history. According to a report by CNN, the deal was reached after extended talks with Japanese officials and is expected to reshape economic ties between the two countries.
Speaking at a reception with Republican lawmakers, Trump said the agreement includes a 15% “reciprocal” tariff on Japanese goods imported into the U.S., including automobiles and car parts. The move puts Japan at an advantage over other major car-exporting nations, which have faced a 25% tariff on automotive exports to the U.S. since April.
Japan has also agreed to invest $550 billion in the U.S., with Trump stating the U.S. will receive 90% of the profits. “This deal will create hundreds of thousands of jobs, there has never been anything like it,” Trump posted earlier on Truth Social. He added that the agreement opens Japan’s markets to more U.S. exports, including rice and other agricultural products.
Following the announcement, Japanese markets surged, with the Nikkei index climbing 3.7%, its highest point in a year, driven by a rally in auto sector shares.
