Trump announces 'massive' Japan trade deal including 15% tariff
The two countries have been locked in negotiations for months since Trump launched his global trade offensive, with levies targeting steel and automobiles -- both important Japanese exports -- seen as particular sticking points.
Trump had previously threatened Japan, a major US trading partner, with a tariff of 25 percent beginning August 1 if a deal was not reached.
"We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump announced on his Truth Social platform.
He said that under the deal, "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits."
He did not provide further details on the unusual investment plan, but claimed the deal "will create Hundreds of Thousands of Jobs."
Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting.
"As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement," Ishiba told reporters in Tokyo after Trump's announcement in Washington.
Japan has agreed to "open their Country to Trade, including Cars and Trucks, Rice and certain other Agricultural Products, and other things," Trump said.
Rice imports are a sensitive issue in Japan, and Ishiba's government had previously ruled out any concessions on the topic.
Japan's Nikkei index bounced over one percent on news of the deal, with Japanese auto stocks rising six percent.
The deal comes after Ishiba faced a bruising weekend election that left his coalition without a majority in the upper house.
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