The United States and Japan have entered into a new trade deal that will lock in reciprocal tariffs of 15% between the trading partners.
President Trump and the Japanese government have announced a trade deal securing 15% reciprocal tariffs between the nations. This is a welcome deescalation of the trade war that the Trump administration began in April 2025.
Trump posted this announcement on his Truth Social platform:
We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their 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%. This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan. Thank you for your attention to this matter!
Annex Wealth Management chief economist Brian Jacobsen told CNBC that “A year ago, that level of tariffs would be shocking. Today, we breath a sigh of relief.”
Trump makes some interesting claims in this announcement, including news of a new $550 billion investment in the United States by Japan. The president claims America will “receive of the profits.” Whatever that means.
Nintendo, Sony, and Xbox all manufacture some or part of their products in China, which has yet to secure a deal with the “glorious leader of the United States.”
The 15% tariff deal with Japan is lower than the 25% level that Trump threatened would go into effect on August 1. Keep it locked on Shacknews for all of the latest tariff and market news to stay up to date on the ongoing global trade war.
