U.S.-Japan Trade Deal Reshapes Tariffs and Sparks Record Investment

President TRUMP signed an executive order implementing a revised trade agreement with Japan, slashing tariffs on Japanese vehicles from 27.5% to 15%—a boon for automakers. The deal exempts key sectors like aerospace, pharmaceuticals, and natural resources from blanket tariffs, a move the White House claims protects domestic industries while fostering fairer trade conditions.

Japan pledged a historic $550 billion investment in U.S. energy, semiconductors, defense, and clean technology sectors, marking the largest foreign capital commitment to the American economy. The influx is projected to create hundreds of thousands of jobs and reduce reliance on Chinese supply chains. Tokyo also agreed to ramp up agricultural purchases, including $8 billion annually in rice, corn, and soybeans.