U.S. and Japan Strike Landmark Trade Deal Amid Political Turmoil

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U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba have announced a significant trade agreement. Under this deal, the tariff on imports from Japan will drop to 15%, replacing the previous rate of 25%. This agreement is part of a broader pact involving $550 billion in Japanese investments in the United States, as well as enhanced market access for American products such as automobiles and agricultural goods.

While Trump has not yet commented specifically on automobile imports, which are a major component of Japan’s exports to the U.S., the White House has not released detailed contents of the agreement. Prime Minister Ishiba indicated that a thorough examination by negotiator Ryosei Akazawa is necessary before revealing more details publicly. This agreement comes as Japan faces political turbulence; recently, Ishiba’s administration lost its upper house majority, leading to calls for his resignation. However, Ishiba aims to secure this trade deal and address economic challenges.

The announcement has already affected markets. Shares of Japanese automakers, including Toyota and Honda, saw significant increases, boosting the Nikkei share average by 2%. The agreement coincides with these political developments in Japan.

📚 Reading Comprehension Quiz

10 Points

What is the new tariff rate on imports from Japan under the announced trade agreement between the U.S. and Japan?

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October 8, 2025

A. 15% B. 20% C. 25% D. 30%

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