In a major development for international trade and domestic economic growth, President Trump signed an executive order last week implementing the U.S.-Japan trade framework agreement announced in late July. This new trade deal is valued at over $15 billion and marks a significant step in strengthening economic ties between the United States and Japan.
The agreement secures vital access to Japanese markets for American exporters. As outlined in the deal, “American farmers and producers will immediately benefit from the deal with Japan’s commitment to purchase $8 billion of U.S. agricultural goods, including corn, soybeans, fertilizers, bioethanol, and sustainable aviation fuel; Japan will make stable and long-term incremental purchases of U.S. energy, including liquified natural gas, totaling $7 billion per year; and Japan will expedite implementation of a 75% increase in purchases of American rice, among others.”
The executive order also introduces new U.S. tariffs. The United States will apply a 15% baseline tariff on nearly all Japanese imports, including automobiles and auto parts, with additional sector-specific tariffs on other goods to protect and support domestic industries.
According to the White House, “Japan’s historic $550 billion investment commitment to President Trump will be invested in U.S. projects selected by President Trump, creating hundreds of thousands of U.S. jobs, dramatically expanding domestic manufacturing, and securing American prosperity for generations.”
This historic U.S.-Japan trade agreement is being praised across sectors, especially in agriculture. U.S. Secretary of Agriculture Brooke Rollins posted on X: “Huge Win for America’s farmers and ranchers. Our ally Japan just delivered MAJOR market access. This is what strong trade leadership looks like! Thank you President Trump for putting America’s farmers FIRST! I’ll be in Japan in just a few weeks to build on this historic trade deal working to deliver immediate market access for America’s farmers and ranchers. Standby!”
This deal not only reinforces the U.S.-Japan economic partnership but also exemplifies President Trump’s trade policy goals of securing fair deals that benefit American workers, farmers, and manufacturers.
Audio Reporting by Dale Sandlin for Southeast AgNet. US Japan Trade Framework Implemented in Executive Order
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