Donald Trump announced a trade deal with Japan on Tuesday, potentially resolving weeks of tense negotiations. The deal includes a 15% tariff on Japanese imports to the US, down from a threatened 25%, and promises increased access for US products including cars, trucks, rice, and agricultural goods in the Japanese market. Trump stated that Japan will invest $550 billion in the United States. Japanese Prime Minister Shigeru Ishiba stated his government would review the details before responding, emphasizing the nation's interests as a primary concern. The deal does not address existing US tariffs on Japanese steel and aluminum.

Following the announcement, reports surfaced that Ishiba may resign as Prime Minister by the end of next month, a consequence of recent electoral losses for his coalition. A senior member of Ishiba's administration confirmed the accuracy of Trump's announcement to NHK, stating Japan welcomes the deal. Shares in Japanese automakers surged following the news. The agreement follows similar trade deals recently concluded with the Philippines, Indonesia, the UK, and Vietnam. A separate deal was announced with the Philippines involving a 19% tariff on goods from the Philippines and no tariffs on US goods, and a similar 19% tariff on Indonesian goods.

Impact Statement: The deal significantly impacts US-Japan relations and the future of the Japanese Prime Minister. The economic effects on both nations remain to be seen.