Trump Claims U.S.-Japan Trade Agreement Reached, Imposing 15% Tariff on Japan

On July 22, U.S. President Trump announced via social media that the United States and Japan have reached a trade agreement: a 15% tariff rate on Japan and a $550 billion investment from Japan to the U.S.

Trump posted on his social platform , stating that the U.S. has just reached a "massive" agreement with Japan, possibly the largest ever.He said that, per his instructions, Japan will invest $550 billion in the U.S., with the U.S. receiving 90% of the profits. This agreement will create hundreds of thousands of jobs.

Trump also noted that, perhaps most importantly, Japan will open its market for trade, including automobiles, trucks, rice, and other agricultural products and goods. Japan will pay a 15% reciprocal tariff to the U.S.Following Trump’s announcement of the progress in U.S.-Japan tariff negotiations, a Japanese government official revealed that, as Trump stated on social media, Japan welcomes this development. This is the result of tough negotiations by Japan’s Minister for Economic Revitalization, Ryo Akazawa.Another Japanese government official stated that, while the specifics are not yet clear, if an agreement can be reached, it would be a significant achievement for U.S.-Japan relations and would greatly alleviate the concerns of the Japanese public. Close attention also needs to be paid to the Japanese industry’s perspective on the 15% tariff rate.