President Donald Trump announced a new trade agreement with Japan on Tuesday, marking a significant development with one of America’s major trading partners. The deal includes a 15 percent tariff on Japanese exports to the U.S. and promises a $550 billion Japanese investment in America. Based on Trump’s post on Truth Social, Japan will open its market to American-made cars, trucks, rice, and various agricultural products. The president emphasized the importance of maintaining good relations with Japan through this agreement. According to Politico, Speaking at the White House on Tuesday night to Republican members of Congress, Trump praised the deal’s significance, stating, “This deal is, they say, the biggest deal ever made, biggest deal ever made.” He added that other countries were “no longer taking advantage of us” and promised more similar agreements in the future. Japanese auto industry faces significant impact from new tariffs The deal comes at a crucial time, as Japanese goods were facing an increase in U.S. tariffs from 10 percent to 25 percent on August 1. This tariff increase is part of Trump’s comprehensive plan affecting numerous imported goods and products. Japan, which ranks as America’s fifth-largest trading partner in 2024, exported $148 billion worth of goods to the U.S. last year, including $58 billion in automotive products. Trump announces Japan trade deal with 15% tariff on importshttps://t.co/G4b78tAwrJ pic.twitter.com/OlNSkvz07k— Ben (@Jamin2g) July 23, 2025 The timing of the agreement appears linked to recent political changes in Japan, where Prime Minister Shigeru Ishiba lost a majority in the upper house of parliament. This shift may have created new opportunities for negotiation, particularly regarding Japan’s traditionally protected rice market. Japanese Trade Minister Ryosei Akazawa, who met with U.S. Commerce Secretary Howard Lutnick earlier this week, posted a brief message on social media confirming his White House visit, describing it as “mission accomplished.” However, when reached for comment, the Japanese embassy did not immediately confirm the terms of the agreement outlined by Trump. The deal represents one of several trade agreements the Trump administration aims to secure before its August 1 deadline for imposing new tariffs on more than 50 trading partners. Major trading partners still without deals include the European Union, South Korea, India, and Brazil.