President Trump announced Tuesday that his administration had reached a major trade deal with Japan, two weeks after he warned the U.S. ally of possible 25% tariffs, as he termed it "the largest deal in history" during a celebration with Republican lawmakers at the White House.
The celebrations came on a day when Trump's White House was rocked by the Jeffrey Epstein scandal, with the president cheerfully announcing a win just hours after sharply criticizing former President Barack Obama. Trump, who had previously announced deals with Indonesia and the Philippines ahead of the August 1 deadline he set after temporarily halting his 'reciprocal' tariffs, said that more talks were underway.
Major Deal Reached
"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," Trump, 79, wrote on Truth Social.
"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%."
Trump repeatedly gushed about its size of the deal, saying, "This is, they say, the biggest deal ever made."
He also confirmed that more deals will be announced in the coming days.
If agreements aren't reached after his administration promised '90 deals in 90 days,' it could trigger another market crash — a scenario Trump is keen to prevent as he continues to promote the booming markets.
"We have Europe coming in tomorrow," said Trump, days after reports of the tariffs he could slap on the European Union.
Big Win for Trump
On July 7, Trump warned Japanese Prime Minister Ishiba Shigeru that Japan would face a 25% tariff on exports to the U.S. if a trade deal wasn't finalized by August 1. According to the Census Bureau, the U.S. recorded a $69.4 billion trade deficit with Japan in 2024.
Japan is the fifth-largest trading partner of the United States, after Mexico, Canada, China, and Germany.
The deal was announced after Japan's lead tariff negotiator, Ryosei Akazawa, engaged in lengthy discussions with Commerce Secretary Howard Lutnick and had a short meeting with Treasury Secretary Scott Bessent, as reported by The Japan Times.
During an Oval Office meeting on Tuesday, Trump also announced a new "tough" trade agreement with Philippine President Ferdinand "Bongbong" Marcos Jr., which included the implementation of 19 percent reciprocal tariffs.
Indonesia also signed a trade agreement with the Trump administration on Tuesday, locking in a 19 percent reciprocal tariff — just a week after the president warned of imposing a 32 percent tariff.
