US President Donald Trump on Tuesday announced that his administration had reached a deal with Japan on trade, which would see the U.S. impose a 15% tariff on Japanese goods. Japanese negotiators offered Mr. Trump a remarkable proposal: Japan will invest $550bn directed by the United States to rebuild and expand core American industries, with the U.S. government receiving 90% of the profits from this investment. At President Trump’s direction, these funds will be targeted toward the revitalization of America’s strategic industrial base, including – among other things – to new shipyards and modernization of existing facilities.
The White House said Wednesday in a fact sheet that the agreement includes Japanese investment in “commercial and defense shipbuilding, including new yards and modernization of existing facilities.”
The deal also involves investments in energy infrastructure and production, including LNG and advanced fuels.
Trump posted on Truth Social that “Japan will invest, at my direction, $550bn dollars into the United States, which will receive 90% of the profits.”
He also said Japan would open its country to trade including cars and trucks, rice and certain other agricultural products, among other items.
Japan will also pay reciprocal tariffs to the United States of 15%, Trump said.
“But I just signed the largest trade deal in history, I think maybe the largest deal in history, Japan,” Trump said.
He repeatedly gushed about its size, saying, “This is, they say, the biggest deal ever made.”
The president has previously touted agreements with the Indonesia and Philippines after its leader met with Trump in the White House on Tuesday.
Trump announced details of the trade deal between the United States and Indonesia brokered this month, ahead of a self-imposed August 1 deadline that was imposed on U.S. trade partners.
Indonesia will eliminate approximately 99% of tariff barriers for a full range of U.S. industrial and U.S. food and agricultural products exported to Indonesia, while the U.S. will reduce to 19% the reciprocal tariffs on originating goods of Indonesia, the White House said on Tuesday.
Trump hailed the deal in a posting on his Truth Social media platform, calling it a “huge win for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”
“Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy,” Trump wrote.
Details of the agreement were released in a joint statement by both countries, and a fact sheet issued by the White House. They said negotiators for both countries would finalize the agreement on reciprocal trade in coming weeks.
Before this deal, Indonesia’s simple average applied tariff was 8% while the U.S. average applied tariff was 3.3%.
US president Donald Trump provided more details Tuesday of the trade deal it reached with Indonesia.
“It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers. The United States of America will now sell American Made products to Indonesia at a Tariff Rate of ZERO, while Indonesia will pay 19% on all of their products coming into the U.S.A. – The Best Market in the World,” Trump posted.
Indonesia will remove restrictions on exports to the United States of industrial commodities, including critical minerals, the joint statement said.
The joint statement said the U.S. would reduce the reciprocal tariff rate to 19%, and “may also identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate.” No further details were provided.
The two countries also said they would negotiate facilitative rules of origin that ensure that the benefits of the agreement accrue primarily to the United States and Indonesia.
They also said Indonesia would work to address barriers for U.S. exports, including through the removal of import restrictions or licensing requirements on U.S. remanufactured goods or their parts, the elimination of pre-shipment inspection or verification requirements on imports of U.S. goods and the adoption and implementation of good regulatory practices.
The US president also announced a new trade deal with the Philippines after President Ferdinand Marcos Jr. visited the White House on Tuesday. Under the agreement, the Philippines will pay a 19% tariff.
“President Ferdinand Marcos, of the Philippines, is just leaving the White House, with all of his many Representatives. It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff. In addition, we will work together Militarily,” Trump said on his social media platform.
In his post, Trump described the meeting as a “beautiful visit” and called Marcos a “very good, and tough, negotiator.”
