Trump Announces $550 Billion Trade Deal with Japan, Promises Thousands of Jobs

President Donald Trump announced a $550 billion trade deal with Japan, which will see Japan investing heavily in the US and opening its markets to US cars, trucks, and agricultural products. The deal is expected to create hundreds of thousands of jobs and marks a significant shift in the US-Japan trade relationship.

President Donald Trump announced a significant trade agreement with Japan, valued at $550 billion, which will see Japan investing heavily in the United States and opening its markets to U.S. cars, trucks, and agricultural products. The deal is expected to create hundreds of thousands of jobs and marks a substantial shift in the U.S.-Japan trade relationship.

Trump made the announcement on Truth Social, stating that Japan will invest $550 billion in the U.S., with the country receiving 90% of the profits. The agreement includes a reciprocal tariff of 15% on U.S. imports from Japan. Additionally, Japan will open its markets to U.S. cars, trucks, rice, and other agricultural products [2].

This trade deal comes as Trump has been working to secure several agreements before an August 1 deadline, when he has threatened to impose tariffs between 10 and 50 percent on more than 50 U.S. trading partners [3]. The agreement with Japan is notable as it is the largest trade deal the Trump administration has reached so far, not counting the temporary tariff truce with China earlier this year [1].

The Japanese auto industry, led by companies like Toyota, Subaru, and Honda, has been significantly impacted by Trump's tariffs, which went into effect at the beginning of April. The new agreement aims to mitigate these effects and provide a boost to U.S. exports in the automotive sector [1].

U.S. imports from Japan totaled $148 billion in 2024, including about $58 billion worth of autos, auto parts, and other automotive products. Japanese goods currently face a 10% U.S. tariff, but it was set to rise to 25% on August 1. The new agreement provides relief from this potential increase [1].

The deal has not yet been officially confirmed by the Japanese government, but Japanese trade minister Ryosei Akazawa is in the U.S. and met with Commerce Secretary Howard Lutnick in recent days [1]. The Japanese government has not issued a statement regarding the deal, but the agreement marks a significant shift in the trade relationship between the two countries [2].

The Trump administration has pledged to make several deals before the August 1 deadline, aiming to secure favorable trade terms for the U.S. [3]. The Japan agreement is a key component of this strategy, as it addresses long-standing trade tensions and provides a significant economic boost for both countries.

References:
[1] https://www.politico.com/news/2025/07/22/trump-claims-new-trade-deal-with-japan-00468891
[2] https://www.benzinga.com/markets/economic-data/25/07/46562556/trump-says-550-billion-trade-deal-with-japan-reached-that-will-create-thousands-of-jobs-there-has-never-been-anything-like-it
[3] https://www.cnn.com/2025/07/22/business/japan-trade-agreement-us