Washington (TDI): On Tuesday night, US President Donald Trump announced the trade deal with Japan, calling it “the largest trade deal” in history.
During a reception with Republican members of Congress on Tuesday night, Trump said, “I just signed the largest trade deal in history; I think maybe the largest deal in history with Japan”.
“They had their top people here, and we worked on it long and hard. And it’s a great deal for everybody”, he added.
This trade agreement will let the US importers to pay 15% tariffs on the goods from japan that are exported to the US.
But most importantly for Japan, the 15% rate will also be applied to the automobiles and car spare parts which gives it an advantage over other major vehicle exporters which are facing 25% tariffs on automobiles since April.
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Japan is also going to invest $550 billion into the United States, and Trump mentioned that the US will receive 90% of its profit.
Trump posted on Truth Social, saying, “This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.
Perhaps most importantly, Japan will open its Country to Trade, including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%.”
Ryosei Akazawa, who was serving as the Japanese tariffs negotiator to the US, posted on X, “Mission accomplished”.
本日、#米国ホワイトハウス に行きました。#任務完了 しました。全ての関係者に心から感謝です。帰りにホワイトハウス内の階段の踊り場で、#カナダ・カナナスキス・サミット の際に #トランプ大統領 と会談中の上司（#石破茂総理）の写真を発見したので記念撮影しました。#ゆっくり急ぐ pic.twitter.com/rgUlpJVFOF
— 赤沢りょうせい (@ryosei_akazawa) July 22, 2025
Ryosei Akazawa, on Tuesday night in Washington, told media that Japan is the first country in the world to be successful in reducing tariffs on automobiles and car parts without restrictions on volume.
Japan’s Prime Minister Shigeru Ishiba told media on Wednesday that this deal is going to create a lot of jobs and good production.
Ishiba also said that the investment of $550 billion in the US is going to be in the form of equity and loans to support Japanese businesses in key sectors that including pharmaceuticals and semiconductors.
Akwaza said that Japan is also looking forward to securing a deal with the US regarding aluminum and steel, which remains at a 50% rate.
An IR student whose interest lies in diplomacy and current affairs and a part time debater
