In a landmark policy move, President Donald Trump has signed an executive order formalising a major trade agreement with Japan, ushering in a new era in economic cooperation between the two nations.

The agreement establishes a universal fifteen percent tariff on nearly all Japanese imports into the United States, with special arrangements for key sectors such as automobiles, aerospace, generic pharmaceuticals, and non-domestic natural resources.

Tariffs on Japanese vehicles, previously set at twenty-seven point five percent, will fall to fifteen percent—effective within days of the order and applied retroactively to goods entering since August seventh. Aerospace products are exempt from additional levies.

In parallel, Japan has pledged an unprecedented five hundred fifty billion-dollar investment in U.S. industries, covering chips, metals, pharmaceuticals, energy, and shipbuilding.

The agreement also includes annual energy purchases of seven billion dollars, including a proposed liquefied natural gas off-take from Alaska, and expanded access for U.S. manufacturers in agriculture—ranging from rice and soy to fertilizer and bioethanol.

Japanese Prime Minister Shigeru Ishiba welcomed the agreement as a diplomatic win, noting clearer terms and enhanced market access for both economies.

U.S. officials framed the deal as a milestone of reciprocity and stability in trade, supporting American exporters and bolstering industrial investment.

Analysts view the agreement as a departure from broad tariff strategies seen earlier in the Trump administration—transitioning to targeted, reciprocal terms that aim to reduce trade imbalances while encouraging strategic capital inflows.

The order underscores the administration’s focus on mutually beneficial trade arrangements that enhance U.S. economic strength and deliver industrial opportunities in concert with key allies.