Trump Announces Trade Deal With Japan, Easing Tensions After Weeks of Strained Talks
Former President Donald Trump announced a new trade agreement with Japan on Tuesday, signaling the end of weeks of tense negotiations that had rattled Japanese politics and markets.
“We just completed a massive deal with Japan,” Trump posted online, claiming that “Japan will invest, at my direction, $550 billion into the United States.”
Japanese Prime Minister Shigeru Ishiba confirmed that his administration had received the terms of the agreement and would evaluate them closely. “Our overarching concern is the interests of the nation,” Ishiba said. Trump also revealed that Japanese goods would be subject to a 15% tariff—lower than the 25% rate he had previously threatened to impose starting August 1.
Trump further claimed that Japan would now open its markets to a wider range of U.S. exports, including cars, trucks, rice, and other agricultural products—issues that had long been sticking points in the negotiations.
A senior official in the Ishiba government told public broadcaster NHK that Trump’s online announcement was accurate and that Japan welcomed the agreement. However, it remains unclear what tariff rates will apply to American imports entering Japan under the new deal.
The trade talks had become politically charged in Japan, especially after Ishiba’s ruling coalition lost its upper house majority in elections last weekend. Ishiba had reportedly linked his political future to the success of the tariff negotiations.
Asked about his leadership plans as the deal neared completion, Ishiba said he remained focused on national interests and would make a formal announcement once the final terms were confirmed.
However, pressure is mounting within Ishiba’s own party for him to resign following consecutive election losses—first in the lower house in October, after a snap election call, and most recently in the upper house. His position is increasingly viewed as unstable.
Japan’s auto industry, which employs roughly 8% of the country’s workforce, had been particularly hard-hit by the U.S. tariff threat. Although Trump’s announcement did not directly address auto tariffs—automobiles account for more than 25% of Japanese exports to the U.S.—NHK reported that the rate would be reduced from 25% to 15%.
The announcement sparked optimism in financial markets. Shares in major Japanese automakers surged, and the Nikkei 225 index climbed more than 1% following the news.
Earlier this month, Trump had expressed frustration over what he described as Japanese consumers’ lack of interest in U.S. cars and agricultural products, calling Japan “very spoiled” and casting doubt on the likelihood of a deal.
Japan’s chief trade negotiator, Ryosei Akazawa, had been in Washington for his eighth round of talks this week. According to Japan’s Asahi Shimbun, Akazawa met directly with Trump at the White House on Tuesday.
The deal with Japan is the latest in a string of trade agreements Trump has announced in recent weeks, including new terms with the Philippines, Indonesia, the UK, and Vietnam. Trump has been under pressure to finalize multiple trade pacts ahead of his self-imposed August 1 tariff deadline.
Earlier on Tuesday, Trump also confirmed a new 19% tariff rate on goods from the Philippines, following a visit from Philippine President Ferdinand Marcos Jr. The White House said the Philippines would not impose any tariffs on U.S. goods in return.
Later in the day, the White House announced similar terms with Indonesia: a 19% tariff on Indonesian exports to the U.S., down from an earlier 32%. The deal also requires Indonesia to eliminate tariff and non-tariff barriers on most American goods.
