OPINION
US-Japan Trade Deal Is a Masterpiece
EJ Antoni, Ph.D. | Jul 25, 2025
The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
President Donal Trump just notched another key trade deal this week with one of America’s biggest trading partners, Japan. America’s negotiator-in-chief managed to secure a half-trillion dollars of investment and preferential treatment for US companies in one of Asia’s biggest markets, which also helps box out China, America’s number-one adversary.
The deal will ultimately mean more investment, income, innovation, and jobs in the US. Japan has agreed to invest $550 billion, with 90 percent of the profits staying stateside. This means more construction and factories, more research and development, and more employment of Americans.
Japan also agreed in this landmark deal to open its markets to American exporters by removing trade barriers on automobiles, agricultural products including rice, energy, industrial inputs, and more.
America is now poised to dominate liquified natural gas (LNG) exports to Japan, which is the world’s second-largest purchaser of LNG. Since the US sits on one of the world’s largest natural-gas deposits, this is a win-win for both nations.
Increasing American exports will help domestic industries thrive by increasing production and employment. As nations like Japan drop their trade barriers and open their markets to US exporters, the demand for those exports rises, and so does the demand for American labor that provides those exports. That means more jobs and faster wage growth here at home.
In exchange for so many concessions on the part of Japan, the US will reduce tariff rates from 27.5 percent on automobiles and 25 percent on almost everything else down to 15 percent. Toyota, which makes many of its vehicles in America but still relies on production in Japan, saw its stock explode on the news, having its best day in 38 years.
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READ MORE: https://townhall.com/columnists/ej-antoni/2025/07/25/us-japan-trade-deal-is-a-masterpiece-n2660906
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