The U.S. and European Union agreed on trade terms that include a 15% rate on most EU products as well as hundreds of billions of dollars of investments in American industry. President Donald Trump and European Commission President Ursula von der Leyen met in Scotland on Sunday to iron out the agreement.

View PDF After more than three months of formal negotiations and many more months of speculation about the Trump administration’s trade and economic policy toward Japan, Washington and Tokyo have agreed to a trade deal.

Analysts at Bank of America said that the Japan deal "looks like a reasonable blueprint" for other auto-exporting countries like South Korea.

Japan's chief tariff negotiator Ryosei Akazawa speaks to the media after a meeting between Prime Minister Shigeru Ishiba and Treasury Secretary Scott Bessent in Tokyo, on July 18, 2025. Shuji Kajiyama/AP

The White House factsheet on the trade deal mentions that Japan will also buy 100 Boeing Co. planes as well as US defense equipment worth additional billions of dollars annually. Akazawa said both these pledges were based on existing plans by Japanese airlines and the government, respectively.

America is now poised to dominate liquified natural gas (LNG) exports to Japan, which is the world’s second-largest purchaser of LNG. Since the US sits on one of the world’s largest natural-gas deposits, this is a win-win for both nations.

Japanese automakers express mixed feelings on the new Trump trade deal. While welcoming lower tariffs, concerns linger over market access and the deal's long-term impact.

A new trade deal between the U.S. and Japan offers significant benefits for both countries, cutting tariffs in half to 15% and creating opportunities across multiple sectors, said Richard Kaye, analyst and portfolio manager at Comgest.

Japan's chief negotiator reached an agreement with U.S. Commerce Secretary Howard Lutnick in mid-June on a deal offering massive Japa