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The USA and Japan have concluded the largest trade deal


July, 23 2025
watermark Economic news

Donald Trump has announced the signing of the largest trade agreement with Japan. As part of the deal, «reciprocal» 15% duties were imposed on Japanese exports to the United States, including cars. Japan has committed to invest $550 billion in the American economy, and the United States expects to receive 90% of the profits from the cooperation.


The agreement expands the access of American goods, including agricultural products and automobiles, to the Japanese market. For Japanese automakers, duties in the United States will be reduced from 25% to 15%. In 2024, cars accounted for 28.3% of Japanese exports to the United States.


The announcement caused the shares of Japanese automakers to rise: Mazda added 17%, Toyota – 11%, Mitsubishi Motors – 13%. The Nikkei 225 index rose by more than 2%. However, car exports from Japan to the United States continue to decline, falling by 26.7% in June. In the first half of 2025, the total volume of Japanese exports to the United States amounted to $70.3 billion, which is 0.8% less than a year earlier.


The deal was signed shortly after the weakening of the ruling coalition's position in the Japanese parliament. Experts believe that this could strengthen the position of Prime Minister Shigeru Ishiba. Trump also announced the imminent conclusion of an LNG deal with Japan and hinted at similar plans with Europe.



    






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