Trump Announces “Massive” US-Japan Trade Deal: 15% Reciprocal Tariff & Billions in Investment
Washington D.C. – July 23, 2025 – President Donald Trump today announced what he’s calling the “largest deal ever made” with Japan, a “massive” agreement that includes a 15% reciprocal tariff and a staggering $550 billion investment from Japan into the U.S. The announcement, shared on Truth Social, marks a significant shift from previous tensions and tariff threats.
Under the terms, Japan will invest $550 billion in the U.S., with the United States set to receive 90% of the profits. This substantial financial commitment, Trump stated, will generate “Thousands of jobs” for Americans.
Perhaps most critically for consumers and industries alike, the deal mandates that Japan will open its markets to U.S. trade, specifically including cars and trucks, rice, and various other agricultural products. This move is expected to be a boon for American farmers and automakers, who have long sought greater access to the Japanese market.
The 15% reciprocal tariff on Japanese goods entering the U.S. is a notable reduction from earlier threats, which had escalated from 24% to 25%. While Japan will pay this tariff, the post didn’t specify whether the U.S. would impose any tariffs on its exports to Japan. Crucially, the deal is expected to bring down the existing 25% tariff on Japanese automobiles imported into the U.S. – a significant point given that auto imports represent a substantial portion of Japanese shipments.
“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 wrote, concluding his post with a note of thanks.
The news has already sent ripples through financial markets. Dow Jones futures, which were initially flat, surged by as much as 150 points before settling. In Tokyo, the Nikkei 225 jumped close to 2% in early trading, with the broader Topix Index also seeing similar gains, signaling strong investor confidence in the newly announced agreement.