United States President Donald Trump on Tuesday announced a sweeping new trade agreement with Japan, describing it as the “largest Deal ever”, while also unveiling separate trade terms with the Philippines and Indonesia.
In a post on Truth Social, Trump said the agreement with Japan would impose “reciprocal” tariffs of 15% on Japanese exports to the United States.
He added that Japan would invest US$550 billion into the U.S. economy, claiming the United States would “receive 90% of the Profits”.
Trump also said Japan had agreed to open its domestic market to American goods, stating: “Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things.”
The president said the deal would generate “Hundreds of Thousands of Jobs”.
The agreement follows Trump’s earlier threats in a tariff letter sent to Japan this month, in which he warned of a 25% tariff on Japanese exports to the U.S. starting 1 August — one percentage point higher than the 24% rate declared under his April 2 “Liberation Day” tariffs.
Japanese automobiles, a key export industry for the country, already face a 25% import tariff in the U.S. Auto shipments to the American market make up 28.3% of Japan’s total exports in 2024, according to customs data.
In tandem with the Japan deal, Trump also announced trade agreements with the Philippines and further details of a previously announced deal with Indonesia.
The news followed his meeting at the White House on Tuesday with Philippine President Ferdinand Marcos Jr.
“It was a beautiful visit, and we concluded our Trade Deal,” Trump wrote on Truth Social. The president did not specify whether a formal signing took place.
Under the terms disclosed, both the Philippines and Indonesia agreed to 19% tariffs on goods exported to the U.S., which will be paid by American businesses. In contrast, U.S. exports to both countries will be exempt from tariffs.
The Philippines agreement marks the fifth trade deal struck by the Trump administration in the past three months.
However, no further details have been released on a similar deal with Vietnam announced earlier this month.
