White House official announces Japan will purchase 100 Boeing airplanes and increase rice imports by 75%, also plans to spend $8 billion on agricultural and other goods

White House official announces Japan will purchase 100 Boeing airplanes and increase rice imports by 75%, also plans to spend $8 billion on agricultural and other goods

In a significant development, Japan has agreed to purchase 100 Boeing aircraft and increase rice imports by 75%, as part of a broader trade deal with the United States. The agreement, announced by the White House, also includes plans for Japan to spend $8 billion on agricultural and other goods. These moves come as part of the ongoing trade negotiations between the two nations, which have been ongoing for several months.

According to a White House official, the deal will see Japan import more rice from the United States, with the agreement allowing for increased shipments within the existing tariff-free quota. Japan will also purchase 100 Boeing aircraft, a move that could significantly boost the U.S. aerospace industry. Additionally, Japan has agreed to increase its annual defense spending with American firms to $17 billion, up from $14 billion previously.

The trade deal, which has been described as a "great deal" by President Donald Trump, was finalized after a series of negotiations that included a final 75-minute Oval Office meeting with Japanese negotiators. The agreement includes a $550 billion investment fund to be used for investments in the United States, with Japan agreeing to provide the funds and return 90% of the profits to the U.S. The specifics of this investment fund, including its timeline and allocation, are still being finalized.

The agreement also includes provisions for Japan to accept cars and trucks built to U.S. motor vehicle safety standards without additional requirements, which could open up the Japanese market for American-built vehicles. This move comes as a significant breakthrough in the negotiations, with the auto sector tariff being one of the main sticking points.

The trade deal has had an immediate impact on the financial markets, with shares in Japanese carmakers jumping in Tokyo on reports that the auto sector rate would be lowered to 15% from 25%. The yen also strengthened against the dollar initially, before weakening after reports of Japan's Prime Minister Shigeru Ishiba's intention to resign.

This deal is part of a broader effort by the Trump administration to secure trade agreements with various countries before a looming deadline for imposing reciprocal tariffs. The U.S. president has been pushing for these agreements to mitigate trade imbalances and protect American industries.

References:
[1] https://finance.yahoo.com/news/trump-strikes-deal-ally-japan-051118672.html
[2] https://www.reuters.com/business/japan-vows-more-us-rice-imports-within-tariff-free-quota-2025-07-23/
[3] https://www.business-standard.com/markets/capital-market-news/yen-tests-2-week-high-against-dollar-on-us-japan-trade-deal-125072300591_1.html