Payam Javan: President Donald Trump has announced a major trade framework with Japan, cutting tariffs on Japanese imports to 15%, down from a planned 25%. In return, Japan will invest $550 billion in the U.S. economy and open its market to American-made autos and rice. Trump called the deal historic, claiming it will create hundreds of thousands of jobs. Japanese Prime Minister Shigeru Ishiba acknowledged the agreement, calling it mutually beneficial. Japan remains the largest investor in the U.S., with about $2 trillion currently committed to American markets, including $1.2 trillion in direct investment as of 2024.

In related moves, Trump introduced a 19% tariff on Philippine goods, while exempting American exports from duties there, and reaffirmed tariffs on Indonesia. He also hinted at an upcoming trade venture with Japan to develop a long-delayed LNG pipeline in Alaska. Talks with the EU are scheduled this week, with Trump warning of possible 30% tariffs on European goods. A separate negotiating window with China remains open until August 12. Treasury Secretary Scott Bessent is heading to Stockholm next week for talks with Chinese officials, aiming to rebalance trade by boosting U.S. manufacturing and Chinese consumption.