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US and Japan Announce Major Trade Agreement: $550 Billion Investment Promised

US and Japan Announce Major Trade Agreement: $550 Billion Investment Promised

A major trade agreement has been announced between the United States and Japan, described by former U.S. President Donald Trump as "the biggest trade deal ever." Trump shared this information via his social media platform, 'Truth Social.' He stated that under this deal, Japan will invest $550 billion in the U.S., and in return, the U.S. will receive 90 percent of the total profit.

$550 Billion Investment Announced

According to Donald Trump, Japan will make a substantial investment of $550 billion in the United States. Although the exact details of this investment, including which sectors will receive funding, have not yet been made public, it is believed that the automotive, technology, agricultural, and industrial sectors may receive a significant portion.

Trump said that this deal will create millions of new jobs in the U.S. He described it as a historic step that no previous government has taken.

Japan to Pay 15 Percent Tariff, Open Domestic Markets

A significant demand from the U.S. in this deal was for Japan to open its domestic markets to American companies. Trump said that Japan is now ready to open its doors, particularly for cars, trucks, rice, and certain other agricultural products.

Trump also mentioned that Japan will pay a 15 percent tariff to the U.S. This will directly benefit the U.S., while Japan will gain greater access to American technology and products.

U.S. Claims 90 Percent of Profits

Trump has claimed that the U.S. will receive 90 percent of the profits from this deal. However, there has been no official clarification on the basis of this profit calculation, nor has any legal documentation of the deal been made public. But Trump maintains that it is the most beneficial trade agreement ever.

Dispute Over Rice and Cars Has Been Long-Standing

Among the trade disputes between the U.S. and Japan, the issue of rice has been the most discussed. Trump has stated on numerous public platforms that Japan does not buy American rice, even though it needs it. Under this deal, Japan will now have to open its doors to American rice as well.

On the other hand, American car companies have long complained about entering the Japanese market. Trump recently stated that Japan has not bought a single car from the U.S. in the past 10 years. However, data from the Japan Automobile Importers Association shows that Japan purchased 16,707 American vehicles in 2024.

Trade Balance and Investment Figures

In 2024, Japan was the fifth-largest importer for the U.S. It sent a total of $148 billion worth of goods to the U.S., mainly including cars, auto parts, and machinery. Conversely, the U.S. exported $80 billion worth of goods to Japan, including petroleum products, medicines, and aerospace technology.

Additionally, Japan is the largest foreign holder of U.S. Treasury bonds, possessing over $1.1 trillion in U.S. Treasury securities. This makes it clear that Japan already plays a significant role in the U.S. economy.

Diplomacy Behind the Deal

This deal had been stalled for several months, with tariff tensions between the two countries. The U.S. repeatedly pressured Japan to open its market to American products. Meanwhile, Japan, considering its own economic interests, hesitated.

But ultimately, Japan yielded to Trump's pressure and business strategy, and the deal was finalized. This agreement comes at a time when America's grip on global trade appears to be weakening, and the U.S. is concerned about China's growing power.

No Official Documents Released Yet

So far, neither the U.S. nor Japan has released any official agreement documents regarding this deal. Information has only been available based on Trump's statements and claims. This is why the business world is still awaiting the technical and economic details of the deal.

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