Chicago – July 23, 2025
President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between allies and major trading partners that appeared elusive just weeks ago.
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Trump said on Truth Social.
As part of the deal, US importers will pay 15% “reciprocal” tariffs on Japanese goods exported to the United States. Japan also will invest $550 billion dollars into the United States, the president said.
Trump added that the US “will receive 90% of the profits.” He did not specify how those investments would work or how profits would be calculated. No official term sheet has been released.
“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. 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%,” Trump posted.
Responding to Trump’s announcement, Japan’s Prime Minister Shigeru Ishiba said the government will examine the details of the deal “carefully,” and will hold a phone or in-person meeting with the American president as necessary. But, like Trump, he gave few concrete details.
“We have been negotiating until the last minute, doing our best to negotiate with each other for automobiles or other products and national interests,” he told reporters at his office on Wednesday. “We believe that this will contribute to the creation of jobs, the production of good products, and the fulfillment of various roles in the world through the mutual cooperation of Japan and the US.”
