United States and Japan have signed a new trade agreement that, in the words of Donald Trump, represents “perhaps the biggest ever made.”
After weeks of tense negotiations and under the threat of a 25% tariff, both countries have reached a compromise that includes reciprocal duties of 15% and significant economic and trade concessions from the Asian country.
According to Trump, the agreement will involve a Japanese investment of $550 billion in the U.S. economy and will allow American market access to sectors traditionally protected by Japan, such as automotive and agriculture.
“This agreement will create hundreds of thousands of jobs. There has never been anything like it. Japan will open its country to trade, including cars and trucks, rice, and certain other agricultural products and other goods,” the leader wrote on Truth Social.
Additionally, he assured that "the United States will receive 90% of the profits", although he did not provide details about the calculation method or the legal terms of the agreement.
Tariffs of 15% and selective liberalization
The central point of the agreement is the imposition of a 15% tariff on Japanese products entering the United States, a measure that replaces Trump's previous threat to raise tariffs to 25%.
The new percentage includes a 2.5% base tariff and a reduction of the additional tariff, initially set at 25%, down to 12.5%. This leaves the total at the agreed 15%.
For Japan, a key concession was the opening to traditionally excluded American products in the Japanese market.
In particular, it was agreed to maintain the "minimum access" system for rice imports—about 770,000 tons annually free of tariffs—a measure that has been in effect since 1995 under the umbrella of the WTO.
"They do not accept our RICE. However, they have a huge shortage of rice," Trump stated nonetheless.
Regarding the steel and aluminum sector, the current tariff of 50% will be maintained, with no changes from either country.
The role of negotiators and the Japanese reaction
The agreement was finalized after a meeting at the White House between Trump and the Japanese negotiator Ryosei Akazawa, who later posted on his X account: "Mission accomplished."
Akazawa also held meetings with the Secretary of Commerce, Howard Lutnick, and the Secretary of the Treasury, Scott Bessent, who had stated days earlier from Tokyo: "A good deal is more important than a rushed agreement..."
The Japanese Prime Minister, Shigeru Ishiba, has been cautious.
Although he acknowledged that the agreement "helps protect the national interests of Japan and the U.S.,” he also indicated that he needs to review its details.
"We have been negotiating to the limit with all our strength, risking our national interests... I will soon be informed of the details, so I will examine them carefully," he indicated.
Political instability in Japan
The signing of the pact comes at a delicate moment for Prime Minister Ishiba, whose ruling coalition suffered a harsh defeat in the Upper House elections last Sunday.
According to the Yomiuri newspaper, Ishiba is considering resigning following this electoral setback and has linked his decision to the outcome of the trade negotiations with the U.S.
"I will explain how I will take responsibility for the defeat once a solution has been reached in these trade negotiations," he said.
Market Reaction
The immediate impact on the markets was significant. The Nikkei index rose 3.21% by mid-session on Wednesday, surpassing 41,000 points.
The leading Japanese automakers reported significant increases: Toyota (+10.07%), Honda (+8.56%), and Nissan (+8.75%).
Mazda surged by 12%. According to Norihiro Yamaguchi, chief economist for Japan at Oxford Economics.
A broader context: Washington's trade offensive
The agreement with Japan is part of a broader campaign by Trump to redefine U.S. trade relations in Asia and around the world.
On the same Tuesday, a pact was also announced with the Philippines featuring a tariff of 19%, and another with Indonesia under similar conditions.
"This has been a very exciting moment for the United States, and especially because we will always continue to have a great relationship with Japan," Trump said at a reception with Republican congressmen.
The agreement with the Philippines was described by Trump as the result of "tough negotiations" and includes provisions for the U.S. to have free access to the Filipino market, while Manila will strengthen bilateral military cooperation.
With Indonesia, in addition to the 19% tariff, contracts were agreed for over 20 billion dollars, including strategic minerals and airplanes.
Trump also announced that representatives from the European Union will arrive this Wednesday to begin negotiations in an effort to avoid a transatlantic trade war.
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