US President Donald Trump announced that the US has finalised a new trade deal with Japan, calling it a “massive Deal,” and said it might be “the largest Deal ever made.” Trump made this announcement on Truth Social.

As part of the agreement, the United States will now impose a 15% reciprocal tariff on goods imported from Japan. He also claimed that this deal would bring $550 billion in Japanese investments into the United States.

“We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Trump posted. He added, “The US will receive 90% of the profits,” though he did not explain how that percentage would be calculated or what it includes.

As of now, no official document explaining the exact terms of the agreement has been released. Trump spoke about the deal again during an event at the White House with Republican lawmakers.

“I just signed the largest trade deal in history; I think maybe the largest deal in history with Japan,” he said. “They had their top people here, and we worked on it long and hard. And it’s a great deal for everybody.”

TRUMP SAYS JAPANESE ARE ‘TOUGH’

Earlier, both sides had called the trade negotiations difficult. Back in June, when reporters asked Trump if a deal with Japan was likely, he said, “They’re tough. The Japanese are tough.”

But on Tuesday, Trump said things had improved and called it a “very exciting time for the United States of America.” He also said, “We will continue to always have a great relationship with the Country of Japan.”

One of the main issues during the talks was rice. Trump had criticised Japan for not buying American rice, even though they had a shortage. “They won’t take our RICE, and yet they have a massive rice shortage,” he posted on Truth Social last month.

While US data shows that Japan bought $298 million worth of American rice in 2023 and $114 million between January and April this year.

CAR IMPORTS AT CENTRE OF TRADE DISPUTE

Cars were another sticking point in the deal. Trump has been repeatedly saying that Japan doesn’t import US-made cars. “We didn’t give them one car in 10 years,” he said earlier this month. However, CNN reported that Japan imported 16,707 American vehicles last year.

Last week, US Treasury Secretary Scott Bessent visited Japanese Prime Minister Shigeru Ishiba in Tokyo. After the meeting, Bessent said, “A good deal is more important than a rushed deal, and a mutually beneficial trade agreement between the United States and Japan remains within the realm of possibility.”

Japan is one of the United States’ biggest trading partners. It is the fifth-largest source of US imports. Japan sent $148 billion worth of goods to the US in 2024. These included cars, car parts, farm machinery, and construction equipment.

Earlier this year, Trump had introduced a temporary 24% tariff on Japanese imports but paused it in April. Since then, a minimum 10% tariff has been in place. Trump had also warned Japan in early July that a 30% tariff could come into effect on August 1 if no agreement was reached.

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With inputs from Agencies

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