President Donald Trump on Tuesday unveiled a historic economic agreement with Japan, declaring that the U.S. will receive a staggering $550 billion in investment — a deal he described as “perhaps the largest Deal ever made.”
The announcement followed high-level meetings between Trump administration officials and Japanese chief trade negotiator Ryosei Akazawa, who visited the White House earlier in the day. Shortly after the meeting, Trump posted on Truth Social:
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.”
Trump said the deal would not only bring unprecedented investment to American industries but also dramatically rebalance trade with Japan. As part of the agreement, Japan will open its markets to U.S. goods — including automobiles, trucks, and agricultural products like rice — and pay a reciprocal 15% tariff on exports to the United States.
“Perhaps most importantly,” Trump added, “Japan will open their Country to Trade … and pay Reciprocal Tariffs to the United States of 15%. This is a very exciting time for the United States of America.”
The deal came just days before Trump’s August 1 deadline, when steep tariffs were set to hit Japanese imports. Negotiators scrambled to finalize the agreement before those penalties took effect.
For Japanese Prime Minister Shigeru Ishiba, the timing is politically perilous. His party recently suffered devastating losses in both houses of Japan’s parliament, with voters turning their focus to inflation and immigration rather than trade. Ishiba had resisted Trump’s terms, hoping to appear tough on trade. The gamble failed — and the new agreement may further weaken his hold on power.
U.S. Treasury Secretary Scott Bessent made clear that Washington’s focus was squarely on outcomes for American workers and industry.
“Our priorities are not the internal workings of the Japanese government. Our priorities are getting the best deal for the American people,” Bessent told CNBC.
If the agreement had fallen through, Bessent said the administration was prepared to escalate pressure. “If we somehow boomerang back to the August 1 tariffs, I would think that a higher tariff level will put more pressure on those countries to come with better agreements,” he said.
The record-breaking deal marks another major trade triumph for President Trump and reinforces his second-term agenda of reviving American manufacturing, securing fair trade, and reshaping U.S. economic partnerships.