
Editor's Note: This article has been updated to correct an error in the previously stated date and the headline.
President Donald Trump declared on Tuesday that a monumental trade agreement has been reached with Japan. The deal, valued at $550 billion, will see Japan investing heavily in the U.S., with America receiving 90% of the profits.
What Happened: Trump emphasized the job creation potential, stating it would generate hundreds of thousands of jobs. Additionally, Japan will open its markets to U.S. cars, trucks, rice, and other agricultural products, while agreeing to a reciprocal tariff of 15% on U.S. imports.
“Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits,” said Trump. He added, “This Deal will create Hundreds of Thousands of Jobs -- There has never been anything like it.”
Trump’s announcement, made through a post on Truth Social, comes after a series of tense trade negotiations with Japan, where he had previously threatened tariffs as high as 35% if no agreement was reached. This deal marks a significant shift in the trade relationship between the two countries.

Screenshot from Donald Trump’s Truth Social Account
Trump expressed excitement about the strengthened U.S.-Japan relationship. He said, “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.”
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Why It Matters: This deal signifies a significant shift in the U.S.-Japan trade relationship. Prior to this, Trump had escalated trade tensions with Japan, threatening to impose steep tariffs if no agreement was reached before a set deadline of August 1.
This threat represented a significant increase from Japan's current 10% tariff rate on most exports, implemented during Trump's April 2 "Liberation Day" when he imposed duties on trading partners worldwide.
Furthermore, Trump had revealed his intention to set new tariff rates unilaterally for various trading partners through letters, bypassing the need for individual trade agreements. This decision left the rest of the world in a state of uncertainty,
Notably, last week, Trump said he had reached a trade deal with Indonesia, which included an order for 50 Boeing jets.
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal