U.S. Japan Trade Relations

On Tuesday, President Trump signed an Executive Order implementing the framework agreement between the United States and Japan that he announced on July 22, 2025.

• The framework agreement provides American producers and manufacturers well over $15 billion of unprecedented access to Japanese markets while still accounting for U.S. national security needs.
  • American farmers and producers will immediately benefit from the deal with Japan’s commitment to purchase $8 billion of U.S. agricultural goods, including corn, soybeans, fertilizers, bioethanol, and sustainable aviation fuel.
  • Japan will make stable and long-term incremental purchases of U.S. energy, including liquified natural gas, totaling $7 billion per year.
  • Japan will expedite implementation of a 75% increase in purchases of American rice.
  • Japan will now recognize U.S. automotive standards and lift longstanding restrictions on U.S. car and truck imports, creating billions of dollars in increased market access for U.S. automakers.
  • Japan will provide Clean Energy Vehicle Introduction Promotion Subsidies for American cars.
• Under the framework agreement, the United States will apply a baseline 15 percent tariff on nearly all Japanese imports entering the United States, including automobiles and auto parts, with separate sector-specific tariff treatment for steel and aluminum, copper, certain aerospace products, generic pharmaceuticals, generic pharmaceutical ingredients, and unavailable natural resources.

Japan committed to provide President Trump $550 billion to invest into the United States towards critical industries of importance to our national and economic security.

• Japan’s historic $550 billion investment commitment to President Trump will be invested in U.S. projects selected by President Trump, creating hundreds of thousands of U.S. jobs, dramatically expanding domestic manufacturing, and securing American prosperity for generations.
• The investments will fund projects in sectors across the United States to advance U.S. national and economic security, including semiconductors, pharmaceuticals, metals, critical minerals, shipbuilding, energy (including pipelines) and artificial intelligence/quantum computing.

The United States and Japan are committed to enhancing economic and national security alignment to bolster supply chain resilience and innovation through complementary action to address non-market policies of third parties, as well as to combat duty evasion and cooperate on investment security and export controls.