President Donald Trump announced a landmark economic agreement with Japan - one of America’s closest allies and most important trading partners.
The deal reached between the U.S. and Japan reaffirms the shared commitment of both nations to economic prosperity, industrial leadership, and long-term security. It delivers a powerful signal that the U.S.–Japan alliance is not only a cornerstone of peace in the Indo-Pacific, but also a driver of global growth and innovation.
Japan has agreed to invest $550 billion directed by the United States to rebuild and expand core American industries. It is the single largest foreign investment commitment ever secured by any country and will generate hundreds of thousands of U.S. jobs, expand domestic manufacturing, and secure American prosperity for generations, the White House affirmed.
At President Trump’s direction, these funds will be targeted toward the revitalization of America’s industrial base including energy infrastructure and production. Investment will also be directed into the semiconductor industry, critical minerals mining, pharmaceutical and medical production, and commercial and defense shipbuilding.
The United States will retain 90 percent of the profits from this investment, ensuring that American workers, taxpayers, and communities reap the overwhelming share of the benefit.
As part of this agreement, imports from Japan will be subject to a baseline 15 percent tariff rate.
In addition to raising billions in revenue, this new tariff framework, combined with expanded U.S. exports and investment-driven production, will help narrow the trade deficit with Japan and restore greater balance to the overall U.S. trade position.
This approach reflects the United States’ broader effort to establish a consistent, transparent, and enforceable trade environment in which American workers and producers are no longer disadvantaged by outdated or one-sided trade rules.
For decades, U.S. companies have faced barriers when seeking access to Japan’s market. This agreement delivers breakthrough openings across key sectors. Japan will immediately increase imports of U.S. rice by 75 percent, with a major expansion of import quotas; Japan will purchase $8 billion in U.S. goods, including corn, soybeans, fertilizer, bioethanol, and sustainable aviation fuel. The US will also expand its energy exports to Japan.
Moreover, Japan has committed to purchase U.S.-made commercial aircraft, including an agreement to buy 100 Boeing aircraft. Japan will also purchase billions of dollars’ worth of U.S. defense equipment, enhancing interoperability and alliance security in the Indo-Pacific.
Longstanding restrictions on U.S. cars and trucks will be lifted, granting U.S. automakers access to the Japanese consumer market and U.S. automotive standards will be approved in Japan for the first time ever.
This agreement reflects the strong and enduring relationship between the United States and Japan, and it advances the mutual interests of both nations.
President Trump has once again delivered a transformative outcome for the American people and empowered in the global economy. [VOA/VP]