Japan will invest over half a trillion dollars into the United States in “perhaps the largest Deal ever made,” President Donald Trump announced on Tuesday.
The deal followed Japan’s chief trade negotiator Ryosei Akazawa coming to Washington this week to meet with top administration officials. Akazawa reportedly joined Trump at the White House shortly before the president announced the agreement via a post on Truth Social.
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits,” said Trump. “This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.”
“Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” he continued. “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. Thank you for your attention to this matter!”
Negotiators for the United States and Japan rushed to work out an agreement ahead of an August 1 deadline when Trump set punishing tariffs to take effect on Japanese imports.
The rough agreement comes at a delicate moment for Japanese Prime Minister Shigeru Ishiba, who recently suffered a severe electoral setback in which his party lost control of the Japanese parliament’s upper house. Ishiba’s party lost the parliament’s lower house in an October vote, according to The Wall Street Journal.
Ishiba held out on striking a deal with Trump, betting that a tough stance on trade negotiations with the United States would earn support from Japanese voters. Polls showed that voters were more concerned with the state of inflation and immigration than on trade negotiations with the United States, however. The electoral loss could cost Ishiba his prime ministership.
Treasury Secretary Scott Bessent signaled that the United States was willing to slow walk trade negotiations despite the tight deadline ahead of Tuesday’s agreement.
“Our priorities are not the internal workings of the Japanese government. Our priorities are getting the best deal for the American people,” Bessent told CNBC.
“If we somehow boomerang back to the August 1 tariffs, I would think that a higher tariff level will put more pressure on those countries to come with better agreements,” he said.