US-Japan trade deal: Trump signs order cutting Japanese tariffs to 15%; part of $550 billion investment deal

President Donald Trump on Thursday (US local time) signed an executive order formally implementing the US-Japan trade agreement, a landmark pact that lowers tariffs on Japanese autos to 15% and secures a $550 billion investment pledge from Tokyo, the White House announced.

The White House confirmed the move in a statement posted on X.



Under the agreement, nearly all Japanese imports entering the United States will face a baseline tariff of 15%. For automobiles, the rate drops from 27.5 % to 15% — a significant victory for Japanese automakers.

In a statement, the White House emphasised Tokyo’s unprecedented investment pledge: “Critically, unlike any other agreement in American history, the Government of Japan has agreed to invest $550 billion in the United States.”

The projects will be selected by US officials and are expected to create thousands of jobs, strengthen domestic manufacturing, and boost infrastructure. Japan has also agreed to purchase US-made commercial aircraft and defense equipment.

Boost for US agriculture and manufacturing

The executive order also outlines sector-specific treatment for automobiles and parts, aerospace products, generic pharmaceuticals, and natural resources not produced in the US

Japan pledged to increase rice imports under its Minimum Access rice scheme and commit to annual purchases of American corn, soybeans, fertilizer, and bioethanol — a package worth about $8 billion.

According to the executive order, the agreement “levels the playing field for American producers, accounts for national security needs, expands US exports and investment-driven production, and helps reduce the trade deficit with Japan.”

The changes will take effect within seven days of being published in the Federal Register. The signing coincided with the arrival of Japan’s lead negotiator, Ryosei Akazawa, in Washington for another round of talks.

The announcement came just as Japan’s lead trade negotiator, Akazawa Ryosei, departed Thursday for a three-day visit to Washington for a new round of talks, reported ANI.