Trump Announces "Massive Deal" with Japan: CNN and Other Media Follow Up!
7/23/20252 min read
On Tuesday, July 22, 2025, at 7:12 AM PDT, President Donald Trump took to his social media platform (@realDonaldTrump) to make a groundbreaking announcement: the United States and Japan had just completed a "massive Deal," which he even called "perhaps the largest Deal ever made." CNN and other media outlets quickly followed up, providing additional context.
According to Trump's tweet and media reports, the key highlights of this "long-awaited" agreement include:
Japan's Huge Investment in the U.S.: At Trump's "direction," Japan will invest a staggering $550 Billion Dollars into the United States! Trump stated that the U.S. will receive 90% of the Profits from this investment. However, media outlets noted that Trump did not specify how these investments would work or how profits would be calculated, and no official term sheet has been released yet.
Creation of Hundreds of Thousands of Jobs: Trump emphasized that this deal would create "Hundreds of Thousands of Jobs" for the U.S., claiming, "There has never been anything like it."
Japan Opening Its Market: Another major component of the agreement is Japan opening its country to trade for the U.S., encompassing Cars and Trucks, Rice and certain other Agricultural Products, among other things.
Reciprocal Tariffs: Japan will also pay 15% "Reciprocal Tariffs" to the United States. Media reports indicated that Japanese goods had previously faced a 24% "reciprocal" tariff briefly, before Trump enacted a 90-day pause in April, leading to a minimum 10% tariff. In early July, Trump had also sent a letter to Japanese Prime Minister Shigeru Ishiba, threatening a 30% tariff by August 1 if a deal wasn't reached.
Trump expressed immense excitement for the deal in his tweet, calling it a "very exciting time for the United States of America," and highlighting that the U.S. will "continue to always have a great relationship with the Country of Japan."
What Does This Mean?
Media analysis suggests that this agreement was reached after "tense negotiations." Considering that China is Japan's top trading partner, and the Trump administration's past pressure on allies to reduce trade with China in favor of deals with the U.S., Japan has been in an "uncomfortable position." This latest deal follows an expanded trade agreement signed in 2019 that went into effect the subsequent year.
If Trump's claims hold true, this agreement would undoubtedly have a profound impact on the economic landscapes of both the U.S. and Japan:
For the U.S.: A $550 billion investment and 90% profit share would inject significant vitality into the U.S. economy. The open markets and reciprocal tariffs could also shift trade balances and potentially stimulate growth and job creation in relevant industries.
For Japan: While the specific details of the agreement are yet to be officially released, it appears Japan has made significant concessions in certain areas, particularly regarding market access and tariffs. However, reaching such a large-scale agreement with the U.S. might also signify broader cooperation and strategic considerations between the two nations.
Currently, the U.S. government has not released detailed information about this agreement. Trump's tweet serves as the primary source, with various media outlets providing additional background and context. We will continue to monitor official statements and media reports for specific terms, implementation timelines, and the long-term impact of this "massive Deal" on the economies and international trade of both countries.