CNN
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\n President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between allies and major trading partners that appeared elusive just weeks ago.\n <\/p>\n
\n \u201cI just signed the largest trade deal in history; I think maybe the largest deal in history with Japan,\u201d Trump said during a reception with Republican members of Congress Tuesday night.\n <\/p>\n
\n \u201cThey had their top people here, and we worked on it long and hard. And it\u2019s a great deal for everybody.\u201d\n <\/p>\n
\n The deal will see US importers pay 15% \u201creciprocal\u201d tariffs on Japanese goods exported to the United States. But importantly for Japan, the 15% rate will also extend to automobiles and car parts – putting it at an advantage over other major vehicle exporters, which have faced a 25% levy on automotive sector exports since April.\n <\/p>\n
\n Japan will also invest $550 billion dollars into the United States, Trump said, adding that the US \u201cwill receive 90% of the profits.\u201d\n <\/p>\n
\n \u201cThis Deal will create Hundreds of Thousands of Jobs \u2014 There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,\u201d Trump had posted<\/a> earlier on Truth Social.\n <\/p>\n \n The news saw Japanese markets hit a one-year high on Wednesday, with a surge in the price of automaker shares pushing the Nikkei 3.7% higher.\n <\/p>\n \n \u201cMission accomplished,\u201d proclaimed Japan\u2019s tariff negotiation Ryosei Akazawa in a post on X, accompanied with a photo of himself in the White House pointing to an image of Trump and Japan\u2019s Prime Minister Shigeru Ishiba in prior talks.\n <\/p>\n \n Japan is \u201cthe first in the world to be able to reduce tariffs on automobiles and auto parts without volume restrictions,\u201d Akazawa told reporters in Washington DC Tuesday night.\n <\/p>\n \n In Tokyo, Ishiba hailed the deal as \u201cthe lowest figure to date for a country that has a trade surplus with the United States,\u201d adding that the government will examine the details of the deal \u201ccarefully.\u201d\n <\/p>\n \n \u201cWe believe that this will contribute to the creation of jobs, the production of good products, and the fulfillment of various roles in the world through the mutual cooperation of Japan and the US,\u201d he told reporters at his office on Wednesday.\n <\/p>\n \n Akazawa explained that the Japanese injection of $550 billion into the US would be in the form of equity and loan to support Japanese businesses\u2019 investments in key fields such as pharmaceuticals and semiconductors.\n <\/p>\n \n The share of American rice imports may increase under the current agricultural trade framework, Akazawa said, while stressing that the agreement would \u201cnot sacrifice Japanese agriculture.\u201d\n <\/p>\n \n Japan will also continue discussions with the US on other tariff measures not covered in Tuesday\u2019s deal, including steel and aluminum, which remain subject to a 50% levy, Akazawa said.\n <\/p>\n \n The Japan agreement was the third piece<\/a> of trade-related news Trump announced on Tuesday. This comes after months of negotiations with key trading partners like the European Union, South Korea, India and dozens of others at a standstill as Trump\u2019s latest August 1 deadline for higher tariffs looms.\n <\/p>\n \n Both sides previously described the negotiations as tense. Asked about the chance of a trade deal with Japan in June, Trump told reporters aboard Air Force One, \u201cThey\u2019re tough. The Japanese are tough.\u201d\n <\/p>\n \n But on Tuesday Trump said the deal marked a \u201cvery 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.\u201d\n <\/p>\n \n Late last month, Trump highlighted rice sales<\/a> as one point of contention between the two nations.\n <\/p>\n \n \u201cThey won\u2019t take our RICE, and yet they have a massive rice shortage,\u201d Trump said in a post<\/a> on Truth Social.\n <\/p>\n \n The country bought $298 million worth of rice from the US last year, according to US Census Bureau trade data. Between January and April of this year, Japan bought $114 million worth of rice.\n <\/p>\n \n But a 2021 report<\/a> published by the Office of the United States Trade Representative under former President Joe Biden stated that \u201cJapan\u2019s highly regulated and nontransparent system of importation and distribution for rice limits the ability of US exporters to have meaningful access to Japan\u2019s consumers.\u201d\n <\/p>\n \n Cars \u2013 a pillar of the Japanese economy \u2013 have also been an issue<\/a> in the negotiations. Trump has said Japan does not import US cars. \u201cWe didn\u2019t give them one car in 10 years,\u201d he said earlier this month.\n <\/p>\n \n Last year, Japan imported 16,707 units of American automobiles, according to the Japan Automobile Importers Association.\n <\/p>\n