Overview

• The pact cuts reciprocal tariffs on most U.S. and Japanese exports from 25% to 15%, reducing auto surcharges to match general goods rates.
• U.S. duties on steel and aluminum remain at 50% under the new terms while Japan commits $550 billion in U.S. investments.
• President Donald Trump and Prime Minister Shigeru Ishiba said the agreement will generate “hundreds of thousands of jobs” and grant Japan the lowest U.S. auto tariffs with no volume limits.
• Japanese automaker shares surged after the deal, with Toyota climbing more than 14% on the Tokyo Stock Exchange.
• The European Union is negotiating its own 15% tariff ceiling to avert €93 billion in standby U.S. countermeasures set to trigger on August 1.