With an Aug. 1 deadline approaching, the United States has reached a trade agreement with Japan, U.S. President Donald Trump announced on social media on Tuesday.
“I just signed … maybe the largest deal in history,” Trump said at the White House.
“We worked on it long and hard, and it’s a great deal for everybody. A lot different from the deals in the past, I can tell you that,” Trump said. Across his political career, Trump has often criticized the trade arrangements between the United States and its allies, among them Japan.
In a post on Truth Social, Trump revealed some details of the agreement.
As a part of the deal, Japan will open to U.S. trade on items like cars and trucks, rice, other agricultural products, “and other things.”
The East Asian nation will also pay reciprocal tariffs to the United States at a rate of 15 percent. Trump had threatened an increase to 25 percent if Japan didn’t come to an agreement before the Aug. 1 deadline.
Industry and government officials with knowledge of the agreement said the deal gives Japan one major win, lowering the tariff on Japanese automobiles by 10 percent, cutting the rate from 25 percent to 15 percent. Japanese cars include some of the most popular manufacturers in the United States, including companies such as Toyota, Honda, and Nissan.
Japan will invest $550 billion in the United States, “which will receive 90% of the Profits” from those investments, Trump said.
“This Deal will create Hundreds of Thousands of Jobs—There has never been anything like it,” he wrote.
“This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan,” Trump said.
The trade deal comes as Japan faces an uncertain political future.
On Sunday, Japanese Prime Minister Shigeru Ishiba’s party lost control of the upper house of the Japanese government, after losing control of the lower house in October. Voters were driven in part by fears about the impending trade deadline.
On Wednesday, Ishiba acknowledged the trade deal, saying it would benefit both nations.
It’s unclear what’s next for the politically split government following the deal.
At a Tuesday dinner, Trump said that negotiations with the European Union (EU) will be held in Washington on Wednesday.
“We have Europe coming in tomorrow, the next day,” Trump told guests.
Earlier this month, Trump sent a letter to EU nations threatening the 27 member states with 30 percent taxes on their goods starting Aug. 1 if no agreement is reached.
US–Indonesian Trade Agreement
Earlier on Tuesday, following through on last week’s announcement, Trump confirmed the details of the U.S.–Indonesia trade agreement.
Under the deal, Indonesia will lower tariffs to zero percent on 99 percent of U.S. exports and eliminate non-tariff barriers, the president said in a Truth Social post on Monday.
Indonesian products entering the United States would be subject to a reciprocal tariff rate of 19 percent, down from the previously announced blanket rate of 32 percent.
Indonesia will also supply the United States with precious critical minerals and purchase American farm products, energy, and Boeing aircraft
“This deal is a huge win for our automakers, tech companies, workers, farmers, ranchers, and manufacturers,” Trump said.
The deal also removes import restrictions and licensing agreements and establishes measures to resolve long-standing intellectual property issues. The two sides will further finalize commitments on digital trade, services, and investment.
Indonesia will, as part of the trade deal, implement a ban on forced labor imports and eliminate rules that restrict unions and collective bargaining rights.
The agreement is projected to be worth approximately $50 billion to the United States, the White House confirmed.
Leaders from Indonesia agreed to several significant commitments, including the removal of pre-shipment inspections, exemption from local content requirements for U.S. firms, and acceptance of U.S. federal motor vehicle safety standards.
Additionally, the deal will include transshipment rules to ensure that China does not exploit the agreement’s benefits.
According to the White House, transshipped goods with high levels of content from nations with higher tariff rates would face a 40 percent levy.
US Finalizing Deal With the Philippines
The latest details of the U.S.–Indonesia trade agreement come as Trump confirmed that the Philippines is next in line to finalize a deal.
After welcoming Philippines President Ferdinand Marcos Jr. to the White House on Tuesday, Trump announced on Truth Social that the Southeast Asian country will open its market to U.S. products with zero percent tariffs. In exchange, Filipino exports to the United States will face a 19 percent levy, slightly lower than the 20 percent proposed in Trump’s letter earlier this month.
“It was a great honor to be with the president. He is highly respected in his country, as he should be. He is also a very good, and tough, negotiator. We extend our warmest regards to the wonderful people of the Philippines!” Trump wrote on his social media platform.
The deals with Indonesia and the Philippines mark the second and third deals between the United States and its trading partners after Trump sent letters to dozens of countries ahead of the Aug. 1 deadline.
Next Up: China
Meanwhile, Treasury Secretary Scott Bessent stated on Tuesday that the Aug. 12 trade deadline with China is likely to be extended.
“I think trade is in a very good place with China,” Bessent said in an interview with Fox Business.
“So I think we’ve actually moved to a new level with China, where it’s very constructive,” he continued. “We’re going to be able to get a lot of things done, now that trade has kind of settled in at a good level.”
Bessent also noted that the administration wants to discuss sanctioned Iranian and Russian crude oil and slow the “glut of manufacturing that they’re doing and concentrate on building a consumer economy.”
Swedish Prime Minister Ulf Kristersson confirmed on X that his country would host the next round of negotiations between the world’s two largest economies. Commerce Secretary Howard Lutnick, speaking with CBS’s “Face the Nation” on Sunday, stated that the United States plans to impose a baseline 10 percent tariff on small countries in Latin America, the Caribbean, and Africa.
Andrew Moran has been writing about business, economics, and finance for more than a decade. He is the author of “The War on Cash.”
Joseph Lord is a congressional reporter for The Epoch Times.
Reprinted with Permission from The Epoch Times – By Andrew Moran & Joseph Lord
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
God Bless President Trump, especially after Obama and Biden’s sheer Marxist stupidity and sheer incompetence
I never get tired of winning. MAGA
Only Trump could do this! MAGA!
President Trump is moving right along and making America better with more business opportunities, plus we are getting our MoJo back. The Biden administration was destroying America.
What a difference!! Makes me proud…….
Amazing what someone who actually has had REAL jobs can do. Unlike lifetime pols like Obama, Biden, AOC, and the commie NYC candidate! DJT is working for ALL Americans; not the liberal nut jobs who can’t tell the difference between a man and a woman! Hope that JD or whoever follows his lead in 2028!
The doomsayers and those with negativity glasses on have been proven once again to be wrong. Our businessman president did it one more time. And he will be doing it till all the countries are on board. He has been too nice by postponing the deadline all the time. Because Europe and China are benefitting with their no tariffs right now. Stock market can be assured there will be no recession no inflation and no unemployment. Now if we can get the Federal Reserve chairman of his high horse for he is holding prosperity for every American back. Just so he can destroy Trump. One man against 77 million voters and climbing. Should we let him or shall we protest.
This is What a President of The United States is supposed to do !! Great job President Trump ????????
Thank God that DJT and common sense has returned to the White House!!!! We MUST keep reminding ourselves of how quickly Commy-la would have flushed our country down the crapper had she stolen the election. GOD BLESS PRESIDENT TRUMP and MAGA!!!!!
President Trump is a great person, business man and President!!!
President Trump has done more for our country than any president before him!
Everything Obama and Biden tried to destroy President Trump has built back our country, our constitution and he will continue to do so!!
President Trump needs to be allowed to run our country without continuing interference from the Democratic Party which is full of Socialists, Marxist, Communists, Muslims/Hamas, etc!! This also means there no good judges, lawyers and unions!!
President Trump is great and he will deal with all our enemies foreign as well as domestic!!!!
Now if we can just get a 28% tariff on Congressional salaries.
More $$$$$ for SS & Medicare, Medicaid alone & scrap IRS
Better to negotiate zero tariffs by all countries.Any money government gets from tariffs will be wasted,like most govt spending.
I know I’m in the minority on this but I still believe tariffs are taxes and will affect the prices paid by consumers! Bringing work back to the states is great if the products produced are affordable to US consumers. The reason jobs ended up overseas is two fold: taxes and union wages! Until both of these are dealt with to help all, prices will continue to go up! Even without inflation! I see it every week at the grocery store!
Why charge the Philippines 19% tariff when they don’t charge us any tariffs at all? Isn’t that unfair when they let us have 4 Bases there and they are also our most loyal ally? They also send us lots of their Doctors, Nurses & Engineers who are educated with American curriculum of education. I think if any country should be given a break, it must be the Philippines. Are you listening Congress & Pres. Trump?
The amazing and sad thing about this is that the mainstream media has all but ignored these advances. And many people have no clue what’s actually happening with these deals…..because they are listening to the wrong sources, and believe them. So, until the results are so massive, they cannot be ignored, no one will know.
No other president in US history has accomplished what President Trump did in the first 6 months.
Japan and the Philippines are great of course but I am especially happy about our deal for rare minerals with Indonesia (which lessens justification for dealings with Ukraine!). Besides, maybe we can get some more Silat Instructors into the USA!
Winning feels good!
It’s unknown whats next for the government in Japan? In essence there will be massive changes attempting to move away from the constant US blackmail on issues such as tariffs including their peoples long desired wish to remove all military personnel from their island nation. I heard once that if there were no American service personnel in Japan the numbers of rapes and aggravated criminal assault would immediately go to zero.
That old term “Ugly American” is a well earned one.