Washington: Japan has announced plans to purchase 100 Boeing aircraft and significantly increase its imports of U.S. rice by 75 percent as part of a newly established trade agreement. This announcement was made by the White House, which revealed that Japan has agreed to buy billions of dollars' worth of agricultural and other products in alignment with the "U.S.-Japan Strategic Trade and Investment Agreement."
According to Yonhap News Agency, the agreement specifies Japan's commitment to acquire US$8 billion in U.S. goods, including corn, soybeans, fertilizer, bioethanol, and sustainable aviation fuel. This move follows U.S. President Donald Trump's announcement of the deal, including a 15 percent "reciprocal" tariff on Japanese goods, which is 10 percentage points lower than initially planned.
The agreement also outlines Japan's investment of $550 billion to revitalize and expand core American industries. The White House emphasized that this is the largest foreign investment commitment ever secured by any country, expected to create numerous U.S. jobs and enhance domestic manufacturing capabilities.
Under President Trump's directive, these funds are intended to strengthen America's strategic industrial base, covering sectors such as energy infrastructure, semiconductor manufacturing, critical minerals mining, pharmaceutical production, and shipbuilding. The U.S. is set to retain 90 percent of the profits from this investment.
The trade deal aims to open up new market opportunities across various sectors. It also includes plans for a significant increase in U.S. energy exports to Japan and a bilateral exploration of a new offtake agreement for Alaskan liquefied natural gas. Additionally, Japan will lift longstanding restrictions on U.S. cars and trucks.
This agreement has prompted South Korea to seek exemptions or relief from the reciprocal tariffs and sector-specific duties on steel, aluminum, and automobiles, due to potential impacts on its export-driven economy.