
Trump strikes tariff deal with Japan, auto stocks surge
It is the most significant of a clutch of deals Trump has bagged since unveiling sweeping global levies in April.
Japan's critical autos sector, which accounts for more than a quarter of its U.S. exports, will see existing tariffs cut to 15% from 25%. Duties that were due to be imposed on other Japanese goods from August 1 will be cut by the same amount.
The announcement sent Japan's benchmark Nikkei stock index climbing over 3% to its highest in a year, led by stocks in automakers with Toyota (7203.T), opens new tab up more than 14% and Honda (7267.T), opens new tab nearly 12%.
"I just signed the largest TRADE DEAL in history with Japan," Trump said on his Truth Social platform. "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," he added.
Ishiba, who local media reported will soon resign after a bruising election defeat on Sunday, hailed the deal as "the lowest figure among countries that have a trade surplus with the U.S."
The U.S. investment package includes loans and guarantees from Japanese government-affiliated institutions of up to $550 billion to enable Japanese firms "to build resilient supply chains in key sectors like pharmaceuticals and semiconductors," Ishiba said.
Japan will also increase purchases of agricultural products such as U.S. rice, a Trump administration official said. Ishiba said the share of U.S. rice imports may increase under its existing framework but that the agreement did "not sacrifice" Japanese agriculture.
The exuberance in financial markets spread to shares of South Korean carmakers, as the Japan deal stoked optimism that South Korea could strike a comparable deal. The yen firmed slightly against the dollar, while European and U.S. equity index futures rose.
But U.S. automakers signaled their unhappiness with the deal, raising concerns about a trade regime that cuts tariffs on auto imports from Japan while leaving tariffs on imports from their plants and suppliers in Canada and Mexico at 25%.
"Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers," said Matt Blunt, who heads the American Automotive Policy Council which represents General Motors (GM.N), opens new tab Ford (F.N), opens new tab and Chrysler parent Stellantis (STLAM.MI), opens new tab.
Autos are a huge part of U.S.-Japan trade, but almost all of it is one-way to the U.S. from Japan, a fact that has long irked Trump. In 2024, the U.S. imported more than $55 billion of vehicles and automotive parts while just over $2 billion were sold into the Japanese market from the U.S.
Two-way trade between the two countries totaled nearly $230 billion in 2024, with Japan running a trade surplus of nearly $70 billion. Japan is the fifth-largest U.S. trading partner in goods, U.S. Census Bureau data show.
Trump's announcement followed a meeting with Japan's top tariff negotiator, Ryosei Akazawa, at the White House on Tuesday.
"#Mission Complete," Akazawa wrote on X, later saying the deal did not include Japanese exports of steel and aluminum that are subject to a 50% tariff, nor any agreement on defence budgets.
The deal was "a better outcome" for Japan than it potentially could have been, given Trump's earlier unilateral tariff threats, said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney.
Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said that "with the 15% tariff rate, I expect the Japanese economy to avoid recession."
Japan is the largest investor in the United States. Together with pension giant GPIF and Japanese insurers, the country has about $2 trillion invested in U.S. markets.
Besides that, Bank of Japan data shows direct Japanese investment in the United States was $1.2 trillion at the end of 2024, and Japanese direct investment flows amounted to $137 billion in North America last year.
Speaking later at the White House, Trump also expressed fresh optimism that Japan would form a joint venture with Washington to support a gas pipeline in Alaska long sought by his administration.
"We concluded the one deal ... and now we're going to conclude another one because they're forming a joint venture with us at, in Alaska, as you know, for the LNG," Trump told lawmakers at the White House. "They're all set to make that deal now."
Trump aides are feverishly working to close trade deals ahead of an August 1 deadline that Trump has repeatedly pushed back under pressure from markets and intense lobbying by industry. By that date, countries are set to face steep new tariffs beyond those Trump has already imposed since taking office in January.
Trump has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be worked out with all of those countries.
At the White House, Trump said negotiators from the European Union would be in Washington on Wednesday.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Independent
5 minutes ago
- The Independent
House Ethics Committee orders AOC to pay nearly $3,000 for Met Gala dress
The House Ethics Committee has directed US Representative Alexandria Ocasio-Cortez to make additional payments concerning her 2021 Met Gala appearance. The committee's investigation revealed she did not fully adhere to Gift Rule regulations, having accepted free admission for her partner and underpaid for certain outfit items. Although Ocasio-Cortez had paid nearly $1,000 for her ′Tax the Rich′ gown and accessories, the panel assessed their fair market value at over $3,700. She has been advised to pay an extra $2,733.28 and contribute $250 to the Met's Costume Institute for her partner's meal. The committee found no evidence of intentional underpayment by Ocasio-Cortez, and her chief of staff confirmed she accepts the ruling and will settle the remaining amounts.


The Guardian
5 minutes ago
- The Guardian
Feeling flush? Americans can Venmo government to help pay off US debt
John F Kennedy's sage words from his inaugural address are forever seared into America's political consciousness: 'Ask not what your country can do for you – ask what you can do for your country.' Six decades and some change later, the United States Treasury is keeping Kennedy's spirit alive by offering Americans with a few dollars collecting dust in their Venmo balance a chance to fulfill a new patriotic duty: helping pay off the national debt. The US treasury department has long had a 'Gifts to Reduce the Public Debt' page available for those that dislike traditional charity, feel like they don't pay enough in taxes, or simply want to help the country stay No 1 in an eclectic list of superlatives that includes military spending, Olympic gold medals, prison population, corn subsidies, and healthcare costs. But the new-age, Gen Z-friendly method of payment is a recent addition, first flagged on Twitter by Planet Money's Jack Corbett. A bipartisan punching bag that trades sides of the aisle depending on who's in office and who needs funds earmarked for projects in their state, concern over the national debt is one of few issues that Democrats and Republicans can unite on. Also bipartisan is the debt's growth, which has increased every year since 2001, when it sat at $10.28tn. As of this writing, the debt has ballooned to $36.72tn. America is on track to continue the trend, with the Congressional Budget Office estimating that Trump's Big Beautiful Bill will add $3.4tn to the debt over the coming decade. It is unclear how much money Trump and Elon Musk's 'Doge' saved, although analysis estimates the number at under the advertised $180bn, and a far cry short of the initially advertised $2tn. The federal government spent $6.75tn in Fiscal Year 2024 while collecting $4.92tn in revenue. Highlights of past and present government spending include the $151bn procurement process for the Trump administration's Golden Dome missile defense project, over $2tn on Lockheed Martin's long delayed F-35 fighter jet, and roughly $800bn in annual spending on the Pentagon, which recently failed its seventh audit in a row. Kind-hearted Americans have gone above and beyond their regular tax-paying duties contributing around $67.3m since 1996. That's enough to fund 20 minutes of the US government's spending habit. If Americans could dig into their couch cushions, eat less takeout, and tighten their belts, they might be able to tackle the problem once and for all. It would only take about $107,000 per person, payable via ACH, Paypal, credit or debit card, and now, Venmo.


Daily Mail
5 minutes ago
- Daily Mail
America's biggest retailer caught hiking prices of hundreds of essentials after promising not to
Amazon has raised prices on hundreds of everyday items, from Campbell's soup to Dove deodorant, despite promising to shield shoppers from tariff-driven inflation. A Wall Street Journal review of nearly 2,500 products found prices rose on about 1,200 items between January 20 and July 1. In contrast, big box rival Walmart lowered its prices on the same items by nearly two percent. Manufacturers of products that went up in price told the Journal they hadn't raised wholesale prices for Amazon. Even US-made products exempt from tariffs, like Campbell's soup, have become more expensive. Items with mixed origins saw even steeper jumps. A storage basket from Ohio-based Dayglow LLC, which imports parts from several countries including China, nearly doubled in price on Amazon—from $9.31 in early 2025 to $19.99 by late April. Dayglow told the publication it has not raised the prices it charges Amazon even though it is now paying more for its imported goods due to tariffs. 'Any container I had that was coming took a cost increase basically overnight,' CEO Nick Morrisroe said of the steel tariffs he now pays after they went in to effect last month. Jeff Bezos's retail giant insists the increases don't reflect a broader shift in its pricing. 'We have not seen the average prices of products offered in our store change up or down appreciably,' the company said. 'Our commitment to offering low prices — not relative percentage changes — is what delivers the most value to our customers.' Many of the items the Wall Street Journal tracked fall under Amazon's 'everyday essentials' — a category that accounted for about one in three products the company sold in the US in the first quarter of 2025. The biggest single-day jump in price for Amazon's items came on February 15, two days after Trump signed an order that suggested he would hit most of the US's trading partners with tariffs. Economists have warned that tariffs will push up the price of everyday essentials and big ticket items for American consumers. Big box competitor Walmart lowered its prices on the same items by nearly two percent Inflation ticked up last month as some of these price changes have begun to make their way into the economy. Overall inflation hit 2.7 percent in June compared to a year earlier, up 0.3 percent than the month before. Car dealers, which are subject to tariffs of 25 percent on imported auto parts, have also begun to raise prices on new vehicles. Other have found sneaky way to raise prices without bumping up the sticker price, including slashing rebates and cheap financing deals.