President Donald Trump announced Tuesday a sweeping $550 billion trade agreement with Japan, calling it possibly the “largest deal ever made.”
“We just completed a massive deal with Japan,” Trump posted on Truth Social. “It will create hundreds of thousands of jobs, and the U.S. will receive 90% of the profits.”
The deal includes Japan opening its markets to U.S. exports such as cars, trucks, rice, and other agricultural goods. Under the agreement, Japan will also impose reciprocal 15% tariffs on American products.
A White House official confirmed Wednesday that Japan will purchase 100 Boeing planes, increase rice imports by 75%, and spend $8 billion on agricultural and industrial products. Defense spending with U.S. companies will rise to $17 billion annually, up from $14 billion.
“This is a very exciting time for the United States,” Trump said during a Tuesday evening appearance. “We’ve always had a great relationship with Japan, and now it’s stronger than ever.”
In a follow-up post, Trump emphasized that Japan opening its market for the first time in history was only possible because of U.S. tariff pressure. “The Open Market may be as big a profit factor as the tariffs themselves,” he wrote.
The agreement follows Trump’s announcement of new 25% tariffs on Japanese imports, which were set to take effect August 1. Trump warned Japan that if they retaliated with their own tariffs, the U.S. would respond with matching increases.
However, he offered a deal: if Japanese companies manufacture products in the U.S., tariffs could be waived and regulatory approvals fast-tracked.
Trump’s reciprocal tariff strategy, introduced at April’s “Liberation Day” event, bases tariffs on the size of America’s trade deficit with each country — and Japan was a top target.