Top Japanese and American officials said Wednesday they were able to reach a trade deal because Tokyo agreed to invest heavily in major projects in the United States.
Japanese Prime Minister Shigeru Ishiba said the approach helped his side secure a 15% tariff on goods its companies send to American markets, instead of the 25% levy that President Trump had threatened.
“With the idea of ‘prioritizing investment over tariffs,’ Japan and the U.S. have reached a deal that will benefit both sides. Automobile tariffs and reciprocal tariffs will be 15%. I sincerely thank [Mr. Trump] for his tremendous leadership,” Mr. Ishiba posted on X. “Together with the President, we will build a new Golden Era for Japan and the U.S.”
The lower car tariff is key for Japan and its export-heavy automobile sector. Normally, Mr. Trump is taxing car imports at 25%.