Trump Signs Executive Order On US-Japan Trade Deal Setting 15% Tariff, $550 Bn Investment

Last Updated:September 05, 2025, 02:42 IST

Trump has referred to the agreement as the “largest deal in history with Japan.”

President Trump had first announced the deal in July, highlighting its major components (Reuters)

US President Donald Trump on Thursday signed an executive order to implement the long-anticipated US-Japan Trade Agreement, Reuters reported. The official details of the order reveal that the US will impose a baseline 15 percent tariff on nearly all Japanese imports entering the country.

In return, Japan has agreed to provide expanded market access to American goods across several key sectors, including manufacturing, aerospace, agriculture, food, energy, automobiles, and industrial products. The agreement outlines reciprocal economic benefits intended to reshape bilateral trade.

“This new tariff framework, combined with expanded United States exports and investment-driven production, will help reduce the trade deficit with Japan and restore greater balance to the overall US trade position," the agreement read.

In a major component of the deal, Japan has also committed to invest $550 billion in the US. The agreement states that this investment will aid in generating local jobs, strengthening domestic manufacturing, and ultimately “secure American prosperity for generations."

President Trump had first announced the deal in July, highlighting its major components, including the 15% tariff on Japanese imports and the significant investment package. Japan’s Prime Minister Shigeru Ishiba welcomed the announcement, describing it as “the lowest figure to date among countries with trade surpluses with the US."

Trump has referred to the agreement as the “largest deal in history with Japan." The trade negotiations came to a head after President Trump sent a letter to the Japanese government in July, warning of a potential 25% tariff on Japanese exports if a new trade agreement was not finalised before August 1.

News world Trump Signs Executive Order On US-Japan Trade Deal Setting 15% Tariff, $550 Bn Investment

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