U.S. President Donald Trump has struck a new trade agreement with Japan, removing the 15% import tariffs on American vehicles. The Trump Japan trade deal, announced on Tuesday, aims to boost U.S. exports and support American manufacturing, particularly in the automotive sector.The deal sent U.S. auto stocks soaring.
Shares in Ford, General Motors, and Tesla saw gains following the announcement. “This is a huge win for our auto workers,” Trump said during a press briefing.
Broader tariff reductions included
The agreement also includes reductions on other U.S. exports, such as agricultural and industrial goods. Trump stated the deal was necessary to “level the playing field” for American producers. Japan, in turn, is expected to benefit from greater access to the U.S. market in specific sectors.
It was reported that the deal is one of Trump’s most consequential trade moves since launching his 2024 campaign. It marks a return to the protectionist trade strategy that defined much of his first term as U.S President.
Focus shifts to Europe
With the Japan agreement secured, Trump is now turning his attention to the European Union. He warned that the EU “better get ready” for tough negotiations. Trump has repeatedly criticised the EU’s trade policies, particularly those affecting American cars and tech firms.
The Trump Japan trade deal represents a key moment in Trump’s effort to reshape global trade relationships in favour of the U.S. Whether similar outcomes can be achieved with Europe remains to be seen.
