Japan to Buy 100 Boeing Jets, Invest $550B in U.S. Under New Trade Agreement

U.S. tariffs on automobiles and other products from Japan will be set at 15% after the conclusion of negotiations with President Donald Trump’s administration. “Japan and the US have been conducting close negotiations with our national interests on the line,” said Prime Minister Shigeru Ishiba. “The two nations will continue to work together to create jobs and good products.”

While the final legal proclamation of the agreement is pending, the core terms have been outlined, according to Bloomberg. One key element is Japan’s role as a supplier of semiconductors, which means any impact on it may ripple through the tech industry. August 1 is the deadline the US set for deciding the “corrective” tariffs calculated by the U.S. administration for its trading partners.

The terms of the deal include Japanese investments in America

Many aspects of the deal remain hypothetical and unofficial. Bloomberg said Japan will have a “safety clause” for forthcoming sectoral tariffs, including those on semiconductors and pharmaceuticals. This step effectively puts Japan on a level playing field with any other nation negotiating for trade with those goods.

Under the agreement, Japan committed to:

• Establishing a $550 billion fund to invest in U.S. projects
• Purchasing 100 Boeing aircraft
• Buying $8 billion in U.S. agricultural and other products
• Increasing defense spending with U.S. firms from $14 billion to $17 billion annually
• Contribute to a liquefied natural gas project in Alaska

Bloomberg’s source said the fund could be used for semiconductor projects in which Japan provides capital, leases the infrastructure to U.S. firms, and shares 90% of profits with the U.S. in a hypothetical 90-10 revenue split.  Trump reportedly crossed out by hand part of the negotiations, changing “$400 billion” to the agreed-upon $550 billion.

Stocks rose after the deal reduced tariffs

Automobile stocks were up in both the U.S. and Japan on Wednesday following the announcement. The Trump administration has paused many of its initially proposed high tariff rates for countries across the world. Now, the U.S. is in the process of negotiating a new normal for global trade.

Despite fears that increased prices for consumers would damage the U.S. economy, pass-through costs remain low, Goldman Sachs economist David Mericle told the Associated Press. However, some companies are feeling the pinch on imported components.

Trump previously delayed a deadline for a blanket 10% import tariff and individual “reciprocal” tariffs, leading to the current deadline of Aug. 2.

Keep your entertainment at your fingertips with the Amazon Fire TV Stick 4K! Enjoy streaming in 4K Ultra HD with access to top services like Netflix, Prime Video, Disney+, and more. With an easy-to-use interface and voice remote, it’s the ultimate streaming device, now at only $21.99 — that’s 56% off!

With a 4.7/5-star rating from 43,582 reviews and 10K+ bought in the past month, it’s a top choice for home entertainment! Buy Now for $21.99 on Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!