Trump announces "massive" trade deal with Japan: Lower 15% import tariffs in exchange for $550 billion investment

By lauraharris // 2025-07-25

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U.S. President Donald Trump announced a landmark trade agreement with Japan, calling it "the largest trade deal in history," which imposes a flat 15 percent tariff on all Japanese goods entering the U.S., including automobiles.
In exchange, Japan has pledged to invest $550 billion into U.S. infrastructure, energy and manufacturing projects – a key component of the deal.
Japan will open its market to U.S. agricultural and automobile imports, including rice, marking a major shift from its historically protectionist stance on food products.
While auto tariffs are reduced under the deal, the existing 50 percent U.S. tariff on Japanese steel remains unchanged.
Financial markets reacted sharply – Japanese stocks surged (Nikkei +3.5 percent), the yen fluctuated and Japanese government bonds fell steeply to 15-year lows; U.S. and European equities also gained on optimism.

President Donald Trump has announced that he secured "the largest trade deal in history" with Japan. Under this agreement, a flat 15 percent tariff will be imposed on all Japanese goods entering the U.S. – including automobiles – in exchange for a massive $550 billion investment commitment from Tokyo. According to a post on his Truth Social platform on Tuesday, July 22, he secured "the largest trade deal ever signed with Japan." Trump announced that the new trade pact with Japan would require Tokyo to open its market to U.S. automobile and agricultural imports, including rice – a significant breakthrough given Japan's historically strong protectionism around its domestic food supply. In a subsequent White House press conference, Trump emphasized that the agreement marks a "historic re-balancing of trade" and will "unlock enormous new opportunities for American workers and farmers." "I just signed the largest trade deal in history, I think maybe the largest deal in history – with Japan," Trump said at the White House after announcing the deal on his Truth Social platform. "And that was done with Japan. They had their top people here and we worked on it long and hard and it's a great deal for everybody." Under the terms of the agreement, Japan will funnel the $550 billion into a range of U.S.-based investments, including infrastructure, energy and manufacturing projects. In return, the U.S. will lower tariffs on Japanese automobiles and other goods to 15 percent. This serves as a significant reduction from the expected 25 percent that was set to take effect Aug. 1. However, the deal does not alter the existing 50 percent tariff on Japanese steel. (Related: Trump slaps 25% tariffs on key Asian allies Japan and South Korea.) "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!" Trump posted on Truth Social.

Swift and varied movements seen in financial markets following the deal

In an immediate reaction to the U.S.-Japan trade deal, financial markets saw swift and varied movements across asset classes. Japan's Nikkei 225 rose to 3.5 percent, buoyed by double-digit gains in automakers such as Toyota, Honda and Mazda. U.S. equity futures climbed over 0.4 percent, while European auto stocks also rallied on speculation that Brussels could negotiate similar tariff terms. The Japanese yen initially firmed by 30 basis points but quickly reversed the gain. It then strengthened again following an NHK report on auto tariffs, only to give up that move as well. Japanese equities rallied, with the Topix index climbing as much as 2.5 percent, while U.S. equity futures also edged higher. S&P futures jumped 20 basis points and have largely held onto those gains. U.S. Treasury futures were offered at 111-09. The most pronounced market move came in Japanese government bonds (JGBs), where yields spiked sharply. JGB futures plunged 95 ticks to 137.65, breaking below last week's low, with support seen near 137.59. Trading volumes surged 18 percent above last week's levels. The next major technical support lies at 137.30, a level not seen in 15 years. UBS reported a strong sell bias on its trading desk, with flows skewed 1:10 toward selling, driven by the fallout from the trade deal. Attention now turns to the 40-year bond auction the next day, the first since Prime Minister Shigeru Ishiba's recent election loss. However, the selloff may be overdone and a solid auction could help stabilize the market. Follow Trump.news for similar stories. Watch the July 8 episode of "Brighteon Broadcast News" as Mike Adams, the Health Ranger, discusses Trump unleashing new tariff wars with an extra attack on BRICS nations.

This video is from the Health Ranger Report channel on Brighteon.com.

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Swift and varied movements seen in financial markets following the deal

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