Washington — President Trump formally signed a trade agreement with Japanese Prime Minister Sanae Takaichi on Tuesday, as he looks to cement deals with key U.S. trading partners during his nearly weeklong trip through Asia.
The deal — which the two countries struck over the summer — calls for the U.S. to charge 15% tariffs on Japanese goods, lower than the 25% initially threatened by Mr. Trump. In exchange, Japan pledged to invest $550 billion in U.S. industry and open its market to American rice, cars and defense equipment. It’s not yet clear exactly where those invested dollars would go.
The two leaders also signed a framework that calls for the U.S. and Japan to cooperate on supplying critical minerals and rare earth metals to each other. Mr. Trump has sought mineral deals with countries such as Australia and Ukraine in recent months as China imposes new restrictions on exports of rare earths, which are essential for computer chips, aerospace and other technology.
During brief remarks to the press before a signing ceremony, Mr. Trump touted the trade deal as “very fair.”
“We’re going to do tremendous trade together, I think more than ever before,” Mr. Trump said Tuesday, calling Japan an “ally at the strongest level.”
Japan is the United States’ fifth-largest trading partner, according to federal statistics. Japan bought $79.7 billion worth of American goods last year, and the U.S. imported $148.2 billion worth of Japanese goods.
More than one-third of U.S. imports from Japan last year — or $52.3 billion — were cars and car parts, powered by Japan’s massive auto industry, according to federal data.
The American and Japanese leaders — whose countries have a shared rivalry with China — also spoke about defense cooperation, with Mr. Trump thanking Japan for its weapons orders from the U.S. During the meeting, which was held at Tokyo’s Akasaka Palace guest house, Takaichi called the U.S.-Japan relationship the “greatest alliance in the world,” and said she would like to work with the U.S. toward a “shared goal of achieving a free and open Indo-Pacific.”
The meeting between Mr. Trump and the Japanese prime minister is their first — Takaichi only took office last week. The first female leader of Japan, Takaichi was close with the late Prime Minister Shinzo Abe, a friend of Mr. Trump’s up until his assassination in 2022.
In a moment of levity, Takaichi apologized to reporters for a late start to the meeting, saying she was watching game three of the World Series. The Los Angeles Dodgers’ two-way star, Shohei Ohtani, is a native of Japan and has a large following in his home country.
On Monday, the president met with Japanese Emperor Naruhito at Tokyo’s imperial palace. Later Tuesday, he’s expected to deliver remarks aboard the USS George Washington at Yokosuka Naval Base and attend a business leadership reception.
Trump to visit South Korea next — and meet with China’s Xi Jinping
South Korea is the next and final stop on the president’s trip, which started over the weekend in Kuala Lumpur, Malaysia — a visit marked by trade frameworks between the U.S. and Cambodia, Malaysia, Thailand and Vietnam.
On the South Korean front, Treasury Secretary Scott Bessent told reporters he doesn’t expect to finalize a trade deal with the country when the U.S. president visits on Wednesday, but said he thinks they’re close. Mr. Trump and the South Korean government announced a framework over the summer that was similar to the Japan deal, with 15% tariffs on South Korean goods and investments pledged in the U.S.
The multi-stop Asia trip will culminate with a meeting with Chinese President Xi Jinping in South Korea on Thursday at a summit of the Asia-Pacific Economic Cooperation (APEC) forum, as they look to put an end to the ongoing trade tensions between the U.S. and China.
On his way to Tokyo, Mr. Trump predicted the U.S. and China would complete a trade agreement before he returns to Washington later in the week. The two sides have had a rocky relationship in recent months. The president threatened to impose an additional 100% tariff on imports from China — for a total rate of 140% — starting Saturday, Nov. 1, lashing out against new export restrictions imposed by Beijing.
On his way to Tokyo, Mr. Trump also said he would like to meet with North Korean leader Kim Jong Un, although there are no such plans for a meeting.