US President Donald Trump has announced a trade agreement with Japan, marking a breakthrough in talks between the two economic allies after weeks of uncertainty.
In a post on Truth Social last night, Trump described the pact as “perhaps the largest Deal ever made”, stating that US importers would now pay 15 percent “reciprocal” tariffs on Japanese goods exported to the United States.
Japan will also invest US$550 billion into the US economy as part of the agreement, the president said. Trump claimed the US “will receive 90 percent of the profits” from this deal, though he did not provide details on how these profits would be calculated or how the investments would be structured, according to CNN.
Trump stated the deal would create “hundreds of thousands of jobs” and highlighted that Japan would open its market to US trade, including automobiles, rice, certain agricultural products and other goods.
The announcement marks the third trade-related development Trump unveiled yesterday, following stalled negotiations with the European Union, South Korea, India and other partners. The timing comes as the US approaches a deadline in August for potential increases in tariffs on foreign goods.