U.S. President Donald Trump announced a “massive” $550 billion trade agreement with Japan, calling it probably the greatest deal ever reached between the two countries. Trump asserted that Japan would invest $550 billion in the United States, with the US receiving 90% of the revenues generated under this agreement. He emphasised that the agreement is projected to generate hundreds of thousands of jobs across several industries.

The pact will see Japan open its market to American products like vehicles, trucks, rice, and agricultural goods while paying 15% reciprocal tariffs to the United States. A White House official announced that Japan will buy 100 Boeing aircraft, increase rice imports by 75%, and spend $8 billion on American agriculture and other products.

Furthermore, Japan would increase its yearly defence spending with US companies to $17 billion, up from $14 billion. Trump emphasised that this is the first time Japan has opened its markets to the United States to this extent, citing tariff leverage as the catalyst for the breakthrough.

The statement follows the previous plan to put 25% tariffs on Japanese imports, with Trump saying that taxes may be removed if Japanese companies manufacture in the United States.