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Japan and US sign trade deal

Jul 23, 2025, 6:36am EDT
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Japan’s Prime Minister and President of the ruling Liberal Democratic Party (LDP) Shigeru Ishiba.
Kim Kyung-Hoon/Reuters

Japan agreed a trade deal with the US that includes a 15% tariff on its exports.

Tokyo also agreed to invest as much as $550 billion in the US, with President Donald Trump saying his country would receive 90% of the profits, though he didn’t provide more details.

The deal is seen by many in Japan as a capitulation, a Bloomberg columnist wrote: Prime Minister Shigeru Ishiba had vowed to protect the car industry, but autos will be subject to the tariff too.

The deal — which came hours after the US signed a trade agreement with the Philippines — is a coup for Trump as countries scramble to meet Washington’s demands ahead of an Aug. 1 deadline.

A chart showing Japan’s main exports to the US
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