Focus on the BIG picture.
Saturday, Jul 26, 2025
Outside the box.
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
The U.S. President disclosed new trade deals that include reduced tariffs and investment pledges from key Asian economies, with Japan committing $550 billion in U.S.-based projects
Former U.S. President Donald Trump has announced a series of new trade agreements with Japan, Indonesia, and the Philippines, detailing what he described as transformative developments for the American economy.
According to statements released on his social media platform, Japan has pledged to invest $550 billion in the United States, with 90% of profits reportedly expected to remain within the country.
The trade agreement with Japan includes significant tariff adjustments, with Japanese imports to the U.S. subject to duties ranging between 15% and 19%.
In return, the Japanese market will open further to U.S. goods, including automobiles, trucks, rice, and other agricultural products.
Trump stated that the investment deal would generate hundreds of thousands of jobs.
Following the announcement, Tokyo’s stock exchange experienced a 3.5% surge, marking the highest closing since July 2024.
Additionally, Japan's 10-year government bond yield rose by 9 basis points to 1.60%.
The agreement with Indonesia entails the removal of 99% of tariffs on American industrial, technological, and agricultural products entering the Indonesian market.
In contrast, Indonesian exports to the U.S. will be subject to a 19% import tariff.
The deal includes commitments by Indonesia to supply critical minerals to the United States and purchase American goods, including Boeing aircraft, agricultural exports, and energy products, in contracts valued in the tens of billions of dollars.
A similar framework has been established with the Philippines, where American products will be exported tariff-free, while Philippine goods entering the U.S. market will face a 19% tariff.
During a state visit by Philippine President Ferdinand Marcos Jr. to Washington, the two countries signed a trade agreement that also includes military cooperation initiatives.
These agreements come two weeks after Trump previously announced plans to impose higher tariffs on several Asian nations—32% on Indonesia, 30% on Japan, and 25% on the Philippines—due to the expiration of a moratorium on his proposed trade measures.
The recent negotiations have led to revised terms and apparent withdrawal from those earlier tariff levels.
Japanese and regional media outlets have prominently covered the announcement, with front pages in Tokyo highlighting the scale of the trade and investment commitments.
The agreements mark a shift in bilateral economic relations between the United States and several Asian partners, following extended negotiations involving trade liberalization and strategic collaboration.
According to statements released on his social media platform, Japan has pledged to invest $550 billion in the United States, with 90% of profits reportedly expected to remain within the country.
The trade agreement with Japan includes significant tariff adjustments, with Japanese imports to the U.S. subject to duties ranging between 15% and 19%.
In return, the Japanese market will open further to U.S. goods, including automobiles, trucks, rice, and other agricultural products.
Trump stated that the investment deal would generate hundreds of thousands of jobs.
Following the announcement, Tokyo’s stock exchange experienced a 3.5% surge, marking the highest closing since July 2024.
Additionally, Japan's 10-year government bond yield rose by 9 basis points to 1.60%.
The agreement with Indonesia entails the removal of 99% of tariffs on American industrial, technological, and agricultural products entering the Indonesian market.
In contrast, Indonesian exports to the U.S. will be subject to a 19% import tariff.
The deal includes commitments by Indonesia to supply critical minerals to the United States and purchase American goods, including Boeing aircraft, agricultural exports, and energy products, in contracts valued in the tens of billions of dollars.
A similar framework has been established with the Philippines, where American products will be exported tariff-free, while Philippine goods entering the U.S. market will face a 19% tariff.
During a state visit by Philippine President Ferdinand Marcos Jr. to Washington, the two countries signed a trade agreement that also includes military cooperation initiatives.
These agreements come two weeks after Trump previously announced plans to impose higher tariffs on several Asian nations—32% on Indonesia, 30% on Japan, and 25% on the Philippines—due to the expiration of a moratorium on his proposed trade measures.
The recent negotiations have led to revised terms and apparent withdrawal from those earlier tariff levels.
Japanese and regional media outlets have prominently covered the announcement, with front pages in Tokyo highlighting the scale of the trade and investment commitments.
The agreements mark a shift in bilateral economic relations between the United States and several Asian partners, following extended negotiations involving trade liberalization and strategic collaboration.
