Trump Announces $550B Deal With Japan
President Trump has unveiled what he called “perhaps the largest Deal ever made” with Japan, cutting U.S. tariffs on Japanese autos and parts from 25% to 15%. The agreement also secures $550 billion in Japanese investments into the U.S., targeting sectors like energy, AI, shipbuilding, and semiconductors. Trump claimed the deal would lead to "hundreds of thousands" of American jobs, while Japanese Prime Minister Shigeru Ishiba celebrated it as the lowest rate secured among countries with U.S. trade surpluses.
Japan, whose economy heavily relies on its automotive sector, will now export cars to the U.S. without quotas, though the new 15% tariff still exceeds the previous 10% rate used during talks. While Japanese automakers like Toyota and Honda saw stock surges, U.S. carmakers weren’t thrilled. Matt Blunt of the American Automotive Policy Council called it “a bad deal” since North American-built vehicles remain taxed at 25%.
The deal, however, arrives amid domestic turmoil for Ishiba, whose party just lost its upper house majority. Rumors of his resignation have gained traction, though he denied any immediate plans to step down. For now, the trade pact offers him a political win and a clear break from Trump’s earlier threat of steeper, sector-specific tariffs.
