President Donald Trump announced Tuesday that the U.S. has finalized a massive $550 billion trade deal with Japan, touting it as the largest
agreement
of its kind and a major boost for American jobs and industry.
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Trump posted on Truth Social. “Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.”
According to the president, the agreement opens up Japanese markets to American exports including automobiles, trucks, rice, and other agricultural goods. Trump also said Japan had agreed to impose reciprocal tariffs of 15% on U.S. goods — a central demand of his administration’s trade policy.
A senior White House official
confirmed
to Fox News that the agreement includes Japan purchasing 100 Boeing aircraft, increasing rice imports by 75%, and buying $8 billion in U.S. agricultural and industrial products. The deal also raises Japan’s defense spending with U.S. companies to $17 billion annually, up from $14 billion.
‘A Historic Breakthrough’
Trump celebrated the
agreement
during remarks at the White House, calling it a “great deal for everybody,” and praised Japanese Prime Minister Shigeru Ishiba’s delegation for working hard to reach an agreement.
“This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan,” Trump said.
In a follow-up Truth Social post Wednesday, Trump declared that the agreement marked “the first time in history that Japan is opening its market to the U.S.,” adding that access to Japan’s market may be as valuable as the tariff benefits.
Trade Pressure Paved the Way
The sweeping deal comes just two weeks after Trump announced 25% tariffs on Japanese imports, set to take effect August 1. In a letter to Prime Minister Ishiba, Trump warned of further tariff hikes if Japan retaliated, but offered to waive tariffs entirely if Japanese companies agreed to manufacture in the U.S.
“There will be no Tariff if companies in Japan decide to build or manufacture product within the United States,” Trump wrote, pledging fast-track approvals for investment.
In April, Trump
introduced
a new “reciprocal tariff” policy, under which U.S. tariffs on foreign goods are based on the size of America’s trade deficit with those countries. At a White House event dubbed “Liberation Day,” he unveiled planned 24% tariffs on imports from both Japan and South Korea — numbers that align closely with the 25% levies now in place.
Trump: This Deal Breaks From the Past
“This is a lot different from the deals in the past,” Trump said of the Japan agreement. “We’re doing really well as a country, and this just adds to it.”
The historic pact is expected to bolster U.S. manufacturing, agriculture, and defense industries while deepening trade ties between Washington and Tokyo — provided both sides continue honoring the terms amid a high-stakes global trade landscape.
