Breakingviews - Japan trade deal breaks US tariff template
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2025
0mins
Source: Reuters
U.S.-Japan Trade Deal: President Trump announced a trade agreement with Japan that sets tariffs on Japanese imports, including autos, at 15%, which is lower than the previously threatened 25%. Japan's Prime Minister Ishiba claimed this deal is favorable for Japan, allowing for significant investment in the U.S. and maintaining some protections for Japanese farmers.
Market Reactions and Economic Implications: The announcement led to a rise in the Topix Autos Index and increased government bond yields, indicating positive market sentiment. However, analysts note that the deal may not significantly benefit Japan's economy, as a large portion of its exports to the U.S. were already tariff-free.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
