In a trade agreement with Japan the US President ended up Donald Trumpwhich provides 15% duties on US imports from the country, including the automotive sector, while creating a $ 550 billion fund with the support of Japan to make investments in America.
The deal, which Trump praised after securing significant developments at a last 75 -minute meeting at the Oval Office on Tuesday, July 22, 2025 with Japan’s leading trading negotiator, saves the US main ally of a 25% endangered duty that was going to take effect next week.
“They had their top people here and worked hard on it, and it’s an excellent deal for everyone,” Trump said at an event at the White House on Tuesday, July 22, 2022.
According to the agreement, Bloomberg reports, Japanese cars and spare parts will be subject to the same 15% rate as other exports in the country, according to a senior US government official, speaking on condition of anonymity to describe the agreement. In return, Japan will receive cars and trucks manufactured in accordance with US motor vehicle safety standards, without submitting them to additional requirements – a potentially important step in selling more US vehicles in the country.
The central element of the agreement with Japan is the commitment of $ 550 billion, which, according to the official, was similar to a state -owned investment fund, on the basis of which Trump himself could direct investment within the US.
The final terms of the agreement must still be guaranteed in an official declaration. Legal details and other details of the $ 550 billion investment commitment are still under forming, the official said.
The timetable for investment is not certain and is not clear whether Trump will be able to allocate the full amount during his term.
The source of Japanese funding was also not readily available. Japanese Prime Minister Sigerou Isiba said the investment amount would reach $ 550 billion and partially come in the form of loan guarantees.
$ 550 billion
Trump played the role of “closer” after eight rounds of negotiations, pushing for more concessions and ensuring better US terms in that final meeting at the Oval Office with Japanese Commerce Negotiator Rosei Akazava.
Commerce Minister Howard Lutnik and Finance Minister Scott Bessed participated in the final talks.
Trump has a history of putting last -minute demands on talks, even before the US sign their agreement with the United Kingdom.
Previously, US and Japanese officials are said to have been discussing a fund of about $ 400 billion, with profits allocated equally. But according to the terms agreed at the Oval Office meeting, Japan agreed to allocate $ 550 billion for investment in America projects that the president considers significantly, through vehicles returning 90% of US profits.
A photo shared by Trump’s assistant, Dan Skavino, on social media shows that the original amount was $ 400 billion, which appears to have been deleted by Trump and replaced by a handwritten amount of $ 500 billion before they reach $ 550 billion.
The official pointed out a hypothetical scenario on how investment could work. The president could, for example, choose a semiconductor project that could be constructed with Japanese funds, leased to operating companies and the resulting profit from the lease to divide 90-10 between the US and Japan.
Boeing, rice, defense
Japan has also agreed to buy 100 Boeing aircraft, increase rice markets by 75% and buy agricultural and other products worth $ 8 billion, while increasing defense spending with US companies to $ 17 billion, from $ 14 billion.
The country will also participate in a LNG pipeline project in Alaska, the official said, an obvious reference to a long -lasting late $ 44 billion operation designed to export state gas to the world. Trump told legislators at the White House on Tuesday night that Japan “forms a consortium” for a proposed LNG project in Alaska. “They are all ready to make this deal now,” Trump said.
“Japan and the US are conducting close negotiations with our national interests being at stake,” Isiba told Tokyo. “The two nations will continue to work together to create jobs and good products.”
Trump also pledged to give Japan a security clause for the upcoming sectoral duties, including the expected duties to semiconductor and pharmaceuticals – with essentially agreeing not to face the country worse than any other nation in terms of these goods.
In fact, this means that Japan will have guaranteed anyone who is the lowest global contributor to these duties. US negotiators have so far resisted efforts to become exceptions and make exceptions for sectoral duties, although the UK agreement included a plan for limited relief from duties to steel.
Japanese automakers’ shares rose to Tokyo following reports that the car rates would be reduced from 25% to 15% for Japan, with Toyota Motor Corp. to rise more than 11%.
Trump has repeatedly focused on car trade as he criticizes trade imbalances with the country. About 80% of Japan’s trade surplus with the US comes from cars and car spare parts.
The yen was at the beginning of the Tokyo meeting, before reinforcing it after a report by the public broadcasting NHK on car duties. Japanese shares in the Topix index rose, led by automakers, and future US shares contracts rose.
The deadline is approaching
The deal with Japan comes a few hours after Trump announced that he had reached an agreement with the Philippines, setting a 19% duty on the country’s exports. The intense activity comes a few days before the August 1 deadline set by the president to impose the so -called “mutual” duties that will hit dozens of commercial partners.
Trump announced for the first time the plan for sweeping duties in almost every US trade partner in April, just to suspend them for 90 days in the midst of market reactions to reach agreements. But at this time he saw the US finalizing only one handful of agreements, and Trump instead proceeded to impose duties on countries and blocks before the forthcoming deadline.
While the US president and his advisers initially indicated that they were planning to hold simultaneous talks with commercial partners, Trump showed little patience for negotiations, saying instead that he just preferred to define duties for other economies. In recent weeks, it has sent a number of letters that determine the levels of duties and also has also made specific industry taxes targeting areas such as copper, semiconductors and medicinal products.
While talks continue with large economies, including the European Union and India, Trump said about 150 smaller countries would be affected by a total of between 10 and 15%.
Trump initially threatened to impose a 24% duty on Japanese imports earlier this year, and then increased the duty to 25% in a letter earlier this month. This suggests that the repeated visits of Acazava to Washington had failed to win a significant impetus for the Japan elections, in which Isiba suffered another setback for the minority government.
Local media reports that the Japanese prime minister is linking his future to developments in talks after the loss of the majority of his ruling coalition in the Upper House.
The issue of cars was a special point of friction in trade negotiations between the two countries.
Japanese automakers have made important plans for investment in the US, including Isuzu Motors Ltd’s $ 280 million investment. In new facilities in South Carolina, and the 88 million dollars’ commitment to Toyota to boost the production of hybrid vehicles.