"Trump unveils Japan trade deal as Ishiba's political future remains uncertain"

Donald Trump has announced a trade agreement with Japan, potentially bringing an end to weeks of tense discussions between the two nations, which had fueled economic concerns in Tokyo and growing doubts about the political future of Prime Minister Shigeru Ishiba.

“We’ve just finalized a major agreement with Japan,” the U.S. president stated in an online post, adding, “Japan will invest $550 billion in the United States under my direction.”

Ishiba said his government’s trade representative had received the agreement’s details and would review them before issuing a response. “Our priority remains the nation’s best interests,” he noted.

In the post on Tuesday evening, Trump mentioned that Japanese imports would now face a 15% tariff, an adjustment from the 25% that had been previously threatened for implementation in early August.

The tariff rate for U.S. goods entering Japan remained unspecified.

He also asserted that Japan would grant greater access to American products such as automobiles, trucks, rice, and certain farm goods—many of which had been key obstacles in negotiations.

Ishiba is under increasing pressure from factions within his own party after pledging to remain as leader following his coalition’s loss of its majority in the upper house in recent elections, as well as its defeat in the lower house last October. His leadership is widely seen as unsustainable after these successive election setbacks.

Following Trump’s announcement, Japan’s Mainichi newspaper reported that Ishiba would step down as prime minister by the end of the following month.

Sources indicate that Ishiba informed close allies he would outline his accountability for the election results once trade negotiations were resolved.

CuriosityNews could not verify these claims.

A senior official in Ishiba's administration told public broadcaster NHK that Trump’s statement about the trade deal was “correct” and something “Japan views positively.”

U.S. tariffs of 50% on Japanese steel and aluminum imports were not part of the agreement, nor did it address defense expenditures, according to Japan’s chief trade negotiator, Ryosei Akazawa.

Japan’s automotive sector—which supports 8% of the country’s workforce—had been impacted by the 25% duty on exports to the U.S. The Tuesday announcement did not specify any relief for vehicle tariffs, which make up over a quarter of Japan’s exports to the U.S. However, Ishiba later confirmed the rate would drop to 15%.

“We are the first nation globally to lower tariffs on automobiles and parts, with no quantity restrictions,” he said at a press briefing.

Shares in Japanese automakers rallied after the news, with the Nikkei 225 index rising by more than 1%.

Earlier in the month, Trump criticized Japan for what he called a lack of demand for American cars and rice, describing the country as “very spoiled.” He had cast doubt on whether an agreement could be reached.