Trump is a historic $550 billion trade agreement with Japan that creates our work
Jeff Sica, founder of Circle Squared Alternative Investments, debates whether President Donald Trump’s new tariffs will cause a market meltdown for “Varney & Co.”
A “large” $550 billion trade contract has reached Japan. Donald Trump On Tuesday, he added that it would create hundreds of thousands of jobs.
“We have just completed a massive deal with Japan, perhaps the biggest deal ever,” Trump wrote of the True Society. “At my direction, Japan will invest $550 billion in the United States, which will receive 90% of the profit. This transaction will create hundreds of thousands of jobs.
Trump said Japan would open the country to trade cars, trucks, rice and other agricultural products.
Japan will also pay 15% mutual tariff on the US based on the transaction.
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President Donald Trump announces a $550 billion trade agreement with Japan, creating hundreds of thousands of jobs and opening the Japanese market to automobiles, trucks and agricultural products. (Reuters/Kent Nishimura/Reuters)
“This is a very exciting time for the United States, especially due to the fact that we are constantly building great relationships with Japan,” Trump said.
While speaking at the White House on Tuesday evening, Trump boasted about the deal and that he “signed the biggest trade deal in history” with Japan.
He said that Japan’s “top people” are in the White House and have been working hard for a long time “a great deal for everyone.”
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President Donald Trump holds the “mutual tariffs” chart while speaking during the “wealthy American” trade announcement event at Rose Garden held at the White House on April 2, 2025. (Chip Somodevilla / Getty Images / Getty Images)
“I always say it has to be great for everyone,” Trump said. “It’s quite a bit. It’s very different from past deals. I can tell you that. But we’re doing really well as a country.”
The deal with Japan comes about two weeks after Trump announced that the US would do so We will impose a 25% tariff About products imported from Japan.
The taxation is expected to come into effect on August 1, and if Japan raises tariffs in retaliation, Trump threatened to increase the same amount of tariffs in a letter sent to Japanese Prime Minister Isgar.
If the country does not trade by August 1st, tariffs will return to April levels, Bescent says.
The employee works on April 1, 2025 at the factory floor of asahi tekko, an automotive parts supplier, located in Jiangjing city, Ikkyo prefecture. (Through Richard A. Brooks / Getty Images / Through Getty Images)
But in the same letter, Trump told Japan.”There are no customs dutiesIf a “Japanese company” decides to build or manufacture a product in the US, we will in fact do everything possible in a few weeks to get approval quickly, professionally and routinely. ”
“We look forward to working with you as your trading partner for years to come. If you want to open up a previously closed trading market in the US and eliminate your tariffs and non-tariffs, policies and trade barriers, we will probably consider adjusting this letter,” Trump added.
In April, Trump announced a “mutual” tariff policy in which US tariffs on goods imported from abroad are based on the scale of the US bilateral trade deficit with those countries.
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Under mutual tariffs announced at the so-called “liberation date” event, imports from Japan face 24% tariffs, while goods from South Korea apply 24% tariffs.
Eric Revell from Fox Business contributed to this report.