Trump Announces $550 Billion Trade Deal with Japan, Slashes Auto Tariffs

President Trump has unveiled what he calls a “massive” trade deal with Japan, setting reciprocal tariffs at 15% and signaling a major shift in U.S.-Japan economic relations. Under the agreement, Japan will invest $550 billion in the U.S., and American officials claim the U.S. will receive 90% of the profits. The deal opens Japanese markets to more American goods—including cars, trucks, rice, and agricultural products—and drops U.S. auto tariffs from 25% to 15%, a welcome relief for Japanese automakers. Japan’s top trade negotiator called it “#MissionAccomplished,” while markets responded with sharp gains across major auto stocks. The announcement comes amid political turbulence in Tokyo, where Prime Minister Ishiba is facing calls to resign following election losses.