US President Donald J. Trump has announced a historic trade deal with Japan, marking a significant milestone in the bilateral relationship between the two nations. The agreement aims to promote economic prosperity, industrial leadership, and long-term security, while delivering a powerful signal that the US-Japan alliance is a cornerstone of global growth and innovation.
Under the terms of the agreement, Japan will invest $550 billion in the US economy, including $275 billion in new investment vehicles, which will create hundreds of thousands of jobs, expand domestic manufacturing, and secure American prosperity for generations. The funds will be targeted towards key areas such as energy infrastructure, semiconductor manufacturing, critical minerals mining, pharmaceutical production, commercial shipbuilding, and defense.
The agreement also includes a predictable tariff framework, with imports from Japan subject to a baseline 15% tariff rate, which aims to narrow the trade deficit with Japan and restore greater balance to the overall US trade position. The deal also secures increased market access for American producers in key sectors such as agriculture, energy, manufacturing, aerospace, automobiles, and industrial goods.
The agreement reflects the strength and mutual respect of the US-Japan economic relationship and recognizes the importance of durable trade grounded in fairness. It marks a significant shift towards a more balanced and reciprocal trade environment, with the US retaining 90% of the profits from this investment.
This landmark deal is a testament to President Trump’s leadership and his ability to deliver transformative outcomes for the American people. The agreement establishes a foundation for shared prosperity, industrial resilience, and technological leadership, ensuring that US workers, producers, and innovators are rewarded, respected, and empowered in the global economy.
Source: https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-secures-unprecedented-u-s-japan-strategic-trade-and-investment-agreement