Trump’s Japan Trade Deal Raises Eyebrows

President Donald Trump has struck a highly unusual trade deal with Japan that grants him sweeping control over Japanese investments in the United States, Malcolm Ferguson reported for The New Republic.

Trump initially levied 25% tariffs on Japan. Under the new terms, he will lower them to 15% if Japan delivers its $550 billion investment within 45 days. (Photo: U.S. Commerce Dept. X)

Under the deal, Japan will invest $550 billion in the U.S. to avoid steep retaliatory tariffs imposed by Trump.

An unpublished memo signed recently by both governments—first reported by The Financial Times—states that Trump himself will decide where those funds are directed.

The agreement comes just as a federal appeals court ruled that the vast majority of Trump’s tariffs were illegal.

Trump initially levied 25% tariffs on Japan. Under the new terms, he will lower them to 15% if Japan delivers its $550 billion investment within 45 days; otherwise, tariffs will return to 25%.

Profits from the deal will be split between the U.S. and Japan until the investment is repaid, after which the U.S. will claim 90% of profits.

The arrangement mirrors other recent “tariff protection” deals, as South Korea and the European Union have pledged major investments and U.S. chipmakers Nvidia and AMD agreed to hand the government a cut of profits generated from their China sales.