US-Japan Trade Deal Announced Amid Global Tensions

President Donald Trump announced a "massive" trade deal with Japan, including reciprocal tariffs of 15% on Japanese exports to the US. Japan will invest $550 billion in the US, with the US receiving 90% of the profits. The deal also includes Japan opening its market to US cars, trucks, rice, and other agricultural products. Auto tariffs on Japan will be lowered from 25% to 15%. The agreement is seen as a boost to Japanese Prime Minister Shigeru Ishiba's leadership, amid political turmoil in Japan. Japanese markets jumped after the announcement, with major auto stocks soaring and the Nikkei 225 gaining over 2%.

Asia-Pacific markets opened higher after US President Donald Trump announced a "massive Deal" with Japan, imposing 15% tariffs on Japanese exports to the US. Japan's Nikkei 225 jumped 3%, while stocks of Japanese automakers such as Honda, Toyota, and Nissan soared on reports of lower US tariffs. The US S&P 500 rose to a record high overnight, and the Dow Jones Industrial Average closed 0.4% higher. Singapore's inflation rate remained at a four-year low, clearing the way for a potential easing of monetary policy. Meanwhile, Japan's Prime Minister Shigeru Ishiba may resign by August, according to local media reports. China's CSI 300 and Hong Kong's Hang Seng Index also rose at the open.

Japan's Nikkei 225 surged over 3% after U.S. President Donald Trump revealed a "massive" trade deal, with its exports to the U.S. facing a 15% tariff, a decrease from the previous rate of 25%. Investors welcomed the news due to the anchoring effect, where the 15% rate appears favorable in comparison to the higher previous tariff. The S&P 500 hit a new record, and other market movements included a trade framework agreement between the U.S. and Indonesia, and a possible extension of the tariff pause between the U.S. and China.

U.S. stock futures rose after President Donald Trump announced a "massive" trade deal with Japan, with S&P 500 futures up 0.24%, Dow Jones Industrial Average futures adding 133 points, and Nasdaq 100 futures up 0.1%. The trade deal includes "reciprocal" tariffs of 15% on Japan's exports to the U.S. Investors are awaiting earnings reports from Alphabet and Tesla, as well as existing home sales data. The S&P 500 had previously closed at a record high for the 11th time in 2025, with the health-care sector rising 1.9% on Tuesday, while the tech-heavy Nasdaq Composite fell 0.4%.

Shares of Japanese automakers such as Honda, Toyota, and Nissan surged after US President Donald Trump announced that auto tariffs on Japanese exports to the US would be lowered to 15% from 25%. Japan's Honda stock jumped 11%, Toyota surged over 15%, and Nissan rose over 9%. South Korean carmakers Hyundai and Kia also saw gains, rising 7% and 6.75% respectively. The new tariff is a result of a deal between Trump and Japanese Prime Minister Shigeru Ishiba, with Japan agreeing to invest $550 billion in the US and open its market to more US goods.

President Donald Trump announced a long-awaited trade agreement with Japan, a framework between the allies and major trading partners that had appeared elusive just weeks prior, with CNN's Kristie Lu Stout breaking down the details of the deal.

The US and Japan have reached a trade deal, with Japan agreeing to "reciprocal" tariffs on US exports and the US reducing its tariffs on Japanese automobiles and car parts from 25% to 15%. Japan will invest $550 billion in the US, mainly in pharmaceuticals and semiconductors, and open its country to more US agricultural goods. The agreement is seen as a significant development, given its status as the country's fifth-largest source of imports, shipping $148 billion worth of goods to the US last year. The deal has been hailed by their governments as creating hundreds of thousands of jobs and benefiting both nations. Japan's Nikkei index surged 3.7% on the announcement, driven by a jump in automaker shares.

US President Donald Trump's trade war escalation, which could see tariffs of up to 40% on exports from over 20 countries, including Japan, South Korea, and the EU, is expected to start on August 1. However, financial markets are skeptical about the likelihood of a prolonged escalation, given Trump's past pattern of "chickening out" on trade threats, dubbed "TACO." The EU is preparing retaliatory measures, including tariffs on $23 billion worth of US goods, and is considering limiting US companies' access to EU financial markets. Despite the potential for a tit-for-tat escalation, many believe that Trump will back down due to pressure from financial markets, US businesses, and voters concerned about the impact on their investments.

President Trump announced a massive trade deal with Japan, with Tokyo agreeing to invest $550 billion in the US, generating 90% profits for the US. Japan will also open its market to US trade, including cars, trucks, and agricultural products, and impose 15% reciprocal tariffs on US exports. The deal comes after Trump threatened to impose 25% tariffs on Japanese exports if an agreement wasn't reached by August 1, and follows a significant US trade deficit with Japan in 2024.

The US and Japan have reached a trade deal, with President Trump announcing that Japan will open its market to American cars, trucks, rice, and other agricultural products, and invest $550 billion in the US. Japan's exports to the US will be subject to a 15% tariff, lower than the 25% previously threatened. The deal also reduces the US tariff on Japanese auto exports from 25% to 15%. Japanese Prime Minister Shigeru Ishiba said he will carefully examine the details, while Japan's chief trade negotiator, Ryosei Akazawa, described the deal as a "mission accomplished." The agreement is seen as a significant development in the Trump administration's efforts to rework US trade relationships.

The US and Japan have reached a trade deal that includes a 15% tariff on Japanese goods and a $550 billion package of US-bound investment and loans from Tokyo, hailed by President Donald Trump as "perhaps the largest Deal ever made", bringing relief to Japan's automotive sector.

US President Donald Trump announced a trade deal with Japan, potentially resolving weeks of tense negotiations that had caused economic uncertainty in Tokyo and speculation over the future of Prime Minister Shigeru Ishiba. The deal includes a 15% tariff on Japanese imports, down from the 25% threatened by Trump, and Japan's commitment to invest $550 billion in the US. Ishiba's position as prime minister is considered tenuous due to his coalition's electoral defeats, and reports suggest he may announce his resignation by the end of next month. The deal does not include US tariffs on Japanese steel and aluminum, and while tariffs on Japanese automobiles were reduced, they were not eliminated.

Chinese and EU leaders are set to meet in Beijing amid high trade tensions, marking 50 years of bilateral relations. The US, particularly President Donald Trump's tariff policy, is complicating EU-China ties. The EU and China have clashes over trade, economic policy, technology, and defense, with the EU imposing restrictions on Chinese companies and China responding with countermeasures. The US actions could trigger a worsening of EU-China relations, and experts have low expectations for the summit, with the best possible outcome being an agreement to continue talks on issues like tariffs and market access.

The EU and China are set to hold a summit in Beijing amid heightened tensions and deep-seated frictions between the two sides. Despite both being targets of Trump's tariffs, the EU and China have been unable to find common ground, with the EU expressing concerns over China's "flooding" of European markets with inexpensive goods, its control over rare earths supply chains, and its backing of Russia in the Ukraine war. China has retaliated against the EU's trade probes and tariffs, including on electric vehicles, and has hit back with its own curbs on European companies. The summit is expected to be contentious, with little chance of concrete outcomes, and may instead focus on maintaining dialogue.

Beijing should encourage Chinese firms to deepen integration with Southeast Asian economies rather than using the region as a transshipment route to the US, according to a senior regional economist, as Washington threatens the export-reliant region with high tariffs, including a 40% tariff on imports diverted through Vietnam.

EU leaders are heading to Beijing for a summit with low expectations due to rising tensions between the EU and China, driven by trade friction and China's support for Russia. Initial hopes for a reset in relations have been dashed, and the only expected outcome is a joint statement on climate issues. The summit's agenda has been scaled back, with the second day's events in Hefei cancelled, and officials are now aiming for a "constructive conversation" on the overall relationship.

China views President Donald Trump's actions as self-sabotage that benefits its own interests and doesn't require prompting from Beijing. Trump's disruption of US institutions, trade wars, and erosion of trust in the US alliance system have allowed China to fill the resulting power vacuum, expanding its influence globally. Chinese officials and commentators see Trump's "America First" agenda as akin to the country's own Cultural Revolution and liken Trump to Mikhail Gorbachev, whose reforms led to the collapse of the Soviet Union. China's strategy involves boosting trade with other countries, arguing that "America First" is a feature of US politics, and promoting a 21st-century international order that suits its own principles. The US is seen as dismantling its own sources of strength, including its alliance relationships, science and technology ecosystem, and soft power, potentially irreversibly damaging its credibility among allies and partners.

Japanese Prime Minister Shigeru Ishiba has denied reports that he is considering resigning, after local media outlets suggested he may step down due to his governing coalition losing its majority in the upper house. The reports came after US President Donald Trump announced a trade deal with Japan, potentially strengthening Ishiba's leadership. Ishiba met with senior LDP members and said he did not discuss his resignation, but shared a "strong sense of crisis" with former Prime Minister Fumio Kishida.

Japanese Prime Minister Shigeru Ishiba is expected to resign by the end of next month after his ruling coalition lost its parliamentary majority in a recent election. Despite initially vowing to stay in office, Ishiba is bowing to calls for accountability for the election loss. His departure is likely to trigger a succession battle within the ruling Liberal Democratic Party as it faces challenges from new parties, including the far-right Sanseito group which gained significant representation in the upper house.

Japanese Prime Minister Shigeru Ishiba said he will decide on resigning after studying a tariff deal with the US, following a historic defeat for his ruling party in a weekend election, in which they lost their majority in the upper house of Japan's parliament.