U.S., Japan strike trade deal including $550B investment

The United States and Japan agreed on a wide-ranging trade deal, U.S. President Donald Trump said on Tuesday evening. Japan will invest $550 billion in the United States, Trump said. The president didn’t specify where the money would be invested, but said he would help direct those choices. The deal would create hundreds of thousands of jobs, he said.

As a part of the deal, Trump lowered his planned 25% tariff on Japanese goods, which was set to begin in August, to 15%. Japan will also open its markets to U.S. automobiles, rice, and other products, Trump said.

What did Japan’s leadership say about the deal? Prime Minister Shigeru Ishiba said the deal would benefit both sides. He thanked Trump and Ryosei Akazawa, the Japanese minister of economic revitalization, for their efforts. He confirmed that the U.S. tariff rate on Japanese-built automobiles and the reciprocal tariff rate would be reduced to 15%.

What’s next in U.S. trade negotiations? Treasury Secretary Scott Bessent is scheduled to meet with Chinese representatives in Stockholm for two days at the end of July. He said the two countries would likely extend a current Aug. 12 deadline for a trade agreement, according to Fox News. Both countries agreed in May to pause their heaviest tariffs on each other’s goods until the deadline. Bessent also said he planned to press China to become less dependent on Russian and Iranian oil, according to Fox News.

Dig deeper: Read Lauren Canterberry’s report on Ishiba’s decision to remain in office despite his party’s recent election loss.