US President Donald Trump announced a “massive” trade deal with Japan on July 23, 2025. He said it includes $550 billion in Japanese investment in the United States. Trump claims the deal will also cut tariffs and create hundreds of thousands of jobs for Americans.
Under the agreement, auto tariffs on Japanese vehicles fall from 25 % to 15 %, a first-ever reduction, noted Japanese PM Shigeru Ishiba. Toyota and Mitsubishi stocks jumped around 14 %, while Japan’s Nikkei index rose 3.5 %. However, steel and aluminium tariffs at 50 % will stay unchanged.
The deal also expands US agricultural exports to Japan, including cars, trucks, rice, and other products. Despite concerns over domestic farming, PM Ishiba assured that the agreement does not compromise Japan’s agricultural sector. Japan will now import more US-grown rice under its WTO commitments.
This new pact is the fifth in Trump’s “90 deals in 90 days” initiative, after agreements with the UK, Vietnam, Indonesia, and the Philippines. Meanwhile, Trump has threatened “reciprocal” tariffs against dozens of countries that fail to reach a deal by August 1.
China has confirmed that Vice Premier He Lifeng will attend US trade talks in Stockholm next week. The goal is to finalize a deal before the August 12 deadline. With leaders watching closely, the outcome could reshape global trade dynamics amid escalating tariff tensions.