Trump Signs Landmark US–Japan Trade Deal: Tariffs Cut to 15%, Tokyo Commits Record $550 Billion Investment in America
Tokyo/Washington(The Uttam Hindu): A new chapter has opened in US–Japan trade relations as US President Donald Trump on Thursday signed an executive order implementing a historic bilateral trade agreement. Trump hailed the deal as “the beginning of a new era in America–Japan economic relations.”
Under the agreement, nearly all imports from Japan into the United States will now face a baseline tariff of 15 percent, down from the earlier 25 percent initially proposed by the Trump administration. Certain sectors, however, have been exempted—including automobiles and auto parts, aerospace products, generic medicines, and natural resources unavailable domestically.
The White House acknowledged that while Trump’s administration had originally announced a 25 percent tariff on imports from Japan and South Korea, multiple rounds of complex negotiations eventually led to a consensus at 15 percent. Officials said the deal is rooted in the principles of reciprocity and mutual national interest.
A major highlight of the agreement is Japan’s pledge to invest a staggering $550 billion in the United States—hailed as the largest such commitment in American history. According to the White House, this investment will significantly boost employment, expand US manufacturing, and strengthen national security.
Additionally, Tokyo has agreed to ramp up imports of US-made commercial aircraft, defense equipment, and agricultural products such as rice, corn, soybeans, fertilizers, and bioethanol. Under the minimum access plan, Japan will increase rice imports by 75 percent, potentially adding $8 billion annually to US agricultural exports.
The White House emphasized that the agreement creates a level playing field for American goods, addresses national security priorities, expands export- and investment-driven production, and helps narrow the trade deficit with Japan. Present in Washington during the signing was Japan’s chief negotiator Ryosei Akazawa, who continued another round of talks even as the executive order was finalized.