US President Donald Trump has announced a trade agreement with Japan, potentially resolving weeks of tense negotiations between the two allies that had caused political turbulence and economic uncertainty in Tokyo.
“We just completed a massive deal with Japan,” Trump said in a social media post on Tuesday evening, adding that “Japan will invest, at my direction, $550 billion dollars into the United States.”
In his post, Trump said Japanese imports would now face a 15 percent tariff—an apparent reduction from the 25 percent he had threatened to impose from August 1.
He also claimed that Japan would open its markets to a range of US goods, including cars, trucks, rice, and several agricultural products, many of which had been sticking points during negotiations.
However, it remained unclear what tariff rates would apply to US goods exported to Japan under the deal.
Ishiba, who had reportedly tied his political fortunes to the success of the talks, said he was focused on the national interest. Asked about his future as prime minister, he said he would make an announcement “once details of the deal were finalised.”
The trade agreement provides a partial reprieve for Japan’s automobile industry, which employs about 8 percent of the country’s workforce and had been severely impacted by the existing 25 percent levy on vehicle exports to the US. While Trump’s announcement did not explicitly reference automotive tariffs, NHK reported that the rate would be reduced to 15 percent.
Japanese automaker stocks surged following the announcement, with the Nikkei 225 index rising by more than one percent.
The US-Japan agreement comes on the heels of trade deals announced in recent weeks with the Philippines, Indonesia, the UK and Vietnam, as Trump faces mounting pressure to finalise multiple agreements ahead of the August 1 tariff deadline.
On Tuesday, Trump also confirmed a new 19 percent tariff rate for imports from the Philippines, following a visit to the White House by President Ferdinand Marcos Jr. In return, Philippine goods exported to the US would face no duties.
Later, the White House confirmed a similar 19 percent rate for Indonesian goods, down from the initial 32 percent, as part of a deal that requires Indonesia to eliminate tariff and non-tariff barriers on most US products.
