TEMPO.CO, Jakarta - President of the United States (US) Donald Trump has announced the "possibly the largest deal ever made" with Japan, one of its largest trading partners. As reported by NBC News, Trump stated that Tokyo will invest US$550 billion in the United States and pay a 15 percent tariff on Wednesday, July 23, 2025.
Trump announced this on his social media account, Truth Social.
"We have just completed a large deal with Japan, possibly the largest deal ever made. Japan will invest, at my direction, US$550 billion in the United States, which will receive 90 percent of its benefits," Trump wrote on Truth Social.
"This deal will create hundreds of thousands of jobs -- unprecedented. Perhaps most importantly, Japan will open their country to trade including cars and trucks, rice and certain other agricultural products, and other goods," said Trump.
"Japan will pay reciprocal tariffs to the United States at 15 percent. This is a very exciting time for the United States, and especially because we will continue to have a good relationship with Japan," he added.
The tariff is lower than the 24 percent threatened by Trump to Japan on April 2 and the 25 percent he said would be imposed on Japanese imports in his letter on July 7. Before Trump's current term, the effective US tariff for imports from Japan was less than 2 percent, according to World Bank data.
The Japanese Foreign Ministry did not immediately respond to requests for comments on the details of the agreement.
August 1 is the latest deadline Trump has set for countries to make deals. This is to avoid the tariffs set by Trump himself in dozens of letters he sent on social media. Although the deadline has been postponed before, Finance Minister Scott Bessent said on Tuesday on Fox Business Network that it is a "fairly tight deadline."
Since Trump's Liberation Day on April 2, the government has not reached any formal trade agreements, but has signed several framework agreements that could be turned into comprehensive agreements.
Japan has been working hard to minimize the impact of Trump's global tariffs. Japan's top trade negotiator has visited the United States at least eight times, most recently on Monday, when he met with Trade Minister Howard Lutnick for over two hours.
He added that Japan will form a joint venture with the United States regarding liquefied natural gas in Alaska.
Japan was the fifth largest source of US imports last year, with American consumers and companies buying goods worth nearly US$150 billion from the country, according to the Department of Commerce.
Negotiations with Japan come at a difficult political time for the Japanese government. The ruling party of Prime Minister Shigeru Ishiba recently lost its majority in the second chamber of the parliament. Ishiba has pledged to remain in office, in part to address economic hurdles.
Trump has recently downplayed the possibility of reaching a deal with Japan.
"The Japanese are tough, but in the end you have to understand that we will just send a letter saying, 'This is what you will pay, if not, you don't need to do business with us.' But there's still a possibility," he said on June 16.
In May, Trump approved the long-delayed takeover of U.S. Steel by Nippon Steel Japan. As part of the deal, Nippon agreed to create at least 70,000 jobs through a US$14 billion investment, according to both companies and the White House.
The two companies then raised it to 100,000 jobs, but clarified that the addition includes "direct, indirect, and induced" jobs.
Separately, Japan's public broadcaster NHK reported, as quoted by CNA that Japan and the United States agreed to maintain the current 50 percent tariff on steel and aluminum as part of the bilateral trade agreement.
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