A “massive” $550 billion trade deal has been reached with Japan, President Donald Trump said on Tuesday, adding that it will create hundreds of thousands of jobs.
“We just completed a massive Deal with Japan, perhaps the largest Deal ever made,” Trump wrote on Truth Social. “Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it.”
Trump said Japan will open its country to trade in things like cars, trucks, rice and other agricultural products.
Japan will also pay reciprocal tariffs of 15% to the U.S., under the deal.
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“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,” Trump said.
While speaking at the White House on Tuesday evening, Trump boasted about the deal and how he “signed the largest trade deal in history” with Japan.
He said Japan’s “top people” were at the White House and worked long and hard on a “great deal for everybody.”
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“I always say it has to be great for everybody,” Trump said. “It’s a great deal – a lot different from the deals in the past, I can tell you that. But, we’re doing really well as a country.”
The deal with Japan comes about two weeks after Trump announced the U.S. would impose 25% tariffs on goods imported from Japan.
The levies were expected to take effect on Aug. 1, and if Japan raised tariffs in retaliation, Trump threatened to increase tariffs by an equal amount in a letter sent to Japanese Prime Minister Shigeru Ishiba.
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In the same letter, though, Trump told Japan that “there will be no Tariff” if companies in Japan “decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – in other words, in a matter of weeks.”
“We look forward to working with you as your Trading Partner for many years to come. If you wish to open your heretofore closed Trading Markets to the United States, and eliminate your Tariff, and Non Tariff, Policies and Trade Barriers, we will, perhaps, consider an adjustment to this letter,” Trump added.
In April, Trump announced a “reciprocal” tariff policy under which U.S. tariffs on goods imported from foreign countries would be based on the size of America’s bilateral trade deficit with those countries.
Under the reciprocal tariffs announced at the so-called “Liberation Day” event, imports from Japan would face a 24% tariff while goods from South Korea would have a 24% tariff applied to them – figures that are largely in line with the 25% tariffs the president announced in his letters.
FOX Business’ Eric Revell contributed to this report.
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