Trump announces trade deal with Japan that lowers threatened tariff to 15%

WASHINGTON (AP) — President Donald Trump announced a trade framework with Japan on Tuesday, placing a 15% tax on goods imported from that nation.

“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,” Trump posted on Truth Social, adding that the United States “will continue to always have a great relationship with the Country of Japan.”

The president said Japan would invest “at my direction” $550 billion into the U.S. and would “open” its economy to American autos and rice. The 15% tax on imported Japanese goods is a meaningful drop from the 25% rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting Aug. 1.

Early Wednesday, Ishiba acknowledged the new trade agreement, saying it would benefit both sides and help them work together.

With the announcement, Trump is seeking to tout his ability as a dealmaker — even as his tariffs, when initially announced in early April led to a market panic and fears of slower growth that for the moment appear to have subsided. Key details remained unclear from his post, such as whether Japanese-built autos would face a higher 25% tariff that Trump imposed on the sector.

But the framework fits a growing pattern for Trump, who is eager to portray the tariffs as win for the U.S. His administration says the revenues will help reduce the budget deficit and more factories will relocate to America to avoid the import taxes and cause trade imbalances to disappear.

The wave of tariffs continues to be a source of uncertainty about whether it could lead to higher prices for consumers and businesses if companies simply pass along the costs. The problem was seen sharply Tuesday after General Motors reported a 35% drop in its net income during the second quarter as it warned that tariffs would hit its business in the months ahead, causing its stock to tumble.

As the Aug. 1 deadline for the tariff rates in his letters to world leaders is approaching, Trump also announced a trade framework with the Philippines that would impose a tariff of 19% on its goods, while American-made products would face no import taxes. The president also reaffirmed his 19% tariffs on Indonesia.

The U.S. ran a $69.4 billion trade imbalance on goods with Japan last year, according to the Census Bureau.

America had a trade imbalance of $17.9 billion with Indonesia and an imbalance of $4.9 billion with the Philippines. Both nations are less affluent than the U.S. and an imbalance means America imports more from those countries than it exports to them.

The president is set to impose the broad tariffs listed in his recent letters to other world leaders on Aug. 1, raising questions of whether there will be any breakthrough in talks with the European Union. At a Tuesday dinner, Trump said the EU would be in Washington on Wednesday for trade talks.

“We have Europe coming in tomorrow, the next day,” Trump told guests.

The president earlier this month sent a letter threatening the 27 member states in the EU with 30% taxes on their goods to be imposed starting on Aug. 1.

The Trump administration has a separate negotiating period with China that is currently set to run through Aug. 12 as goods from that nation are taxed at an additional 30% baseline.

Treasury Secretary Scott Bessent said he would be in the Swedish capital of Stockholm next Monday and Tuesday to meet with his Chinese counterparts. Bessent said his goal is to shift the American economy away from consumption and to enable more consumer spending in the manufacturing-heavy Chinese economy.

“President Trump is remaking the U.S. into a manufacturing economy,” Bessent said on the Fox Business Network show “Mornings with Maria.” “If we could do that together, we do more manufacturing, they do more consumption. That would be a home run for the global economy.”

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Associated Press writer Mari Yamaguchi contributed from Tokyo.

Japanese Prime Minister Shigeru Ishiba, right, shakes hands with U.S. Treasury Secretary Scott Bessent before their meeting at the prime minister's office in Tokyo, Japan, Friday, July 18, 2025. (AP Photo/Shuji Kajiyama, Pool)

President Donald Trump speaks during a reception for Republican members of Congress in the East Room of the White House, Tuesday, July 22, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

A staff member distributes an extra edition of the Yomiuri Shimbun newspaper reporting that President Donald Trump announced a trade framework with Japan on Tuesday, Wednesday, July 23, 2025, in Tokyo. The headline reads "U.S., a 15% tax on goods imported from Japan." (AP Photo/Eugene Hoshiko)

A staff member distributes an extra edition of the Yomiuri Shimbun newspaper reporting that President Donald Trump announced a trade framework with Japan on Tuesday, Wednesday, July 23, 2025, in Tokyo. The headline reads: U.S. a 15% tax (on goods imported) from Japan. (AP Photo/Eugene Hoshiko)

Japanese Prime Minister Shigeru Ishiba speaks to the media regarding the Japan-U.S. trade framework at the prime minister's office in Tokyo, Japan, Wednesday, July 23, 2025. (Kyodo News via AP)

Japanese Prime Minister Shigeru Ishiba, right, shakes hands with U.S. Treasury Secretary Scott Bessent before their meeting at the prime minister's office in Tokyo, Japan, Friday, July 18, 2025. (AP Photo/Shuji Kajiyama, Pool)

President Donald Trump speaks during a reception for Republican members of Congress in the East Room of the White House, Tuesday, July 22, 2025, in Washington. (AP Photo/Julia Demaree Nikhinson)

KAMPALA, Uganda (AP) — Vote counting was underway Friday in Uganda’s tense presidential election, which was held a day earlier amid an internet shutdown, voting delays and complaints by an opposition leader who said some of his polling agents had been detained by the authorities.

Opposition leader Bobi Wine said Thursday he was unable to leave his house and that his polling agents in rural areas were abducted before voting started, undermining his efforts to prevent electoral offenses such as ballot stuffing.

Wine is hoping to end President Yoweri Museveni's four-decade rule in an election during which the military was deployed and heavy security was posted outside his house near Kampala, the Ugandan capital, after the vote.

The musician-turned-politician wrote on X on Thursday that a senior party official in charge of the western region had been arrested, adding there was “massive ballot stuffing everywhere.”

Rural Uganda, especially the western part of the country, is a ruling-party stronghold, and the opposition would be disadvantaged by not having polling agents present during vote counting.

To try to improve his chances of winning, Wine had urged his supporters to “protect the vote” by having witnesses document alleged offenses at polling stations, in addition to deploying official polling agents.

Wine faced similar setbacks when he first ran for president five years ago. Museveni took 58% of the vote, while Wine got 35%, according to official results. Wine said at the time that the election had been rigged in favor of Museveni, who has spoken disparagingly of his rival.

Museveni, after voting on Thursday, said the opposition had infiltrated the 2021 election and defended the use of biometric machines as a way of securing the vote in this election.

Museveni has served the third-longest tenure of any African leader and is seeking to extend his rule into a fifth decade. The aging president’s authority has become increasingly dependent on the military, which is led by his son, Muhoozi Kainerugaba.

Uganda has not witnessed a peaceful transfer of presidential power since independence from British colonial rule six decades ago.

Voters line up to cast their ballots at a polling station, during the presidential election, in the capital, Kampala, Uganda, Thursday, Jan. 15, 2026. (AP Photo/Brian Inganga)

Election officials count ballots after the polls closed for the presidential election at a polling station in Kampala, Uganda, Thursday, Jan. 15, 2026. (AP Photo/Brian Inganga)

An election official holds up unmarked ballots during the vote count after polls closed for the presidential election, at a polling center in Kampala, Uganda, Thursday, Jan. 15, 2026. (AP Photo/Brian Inganga)

A political representative speaks as he works to observe and verify the counting of ballots after polls closed in the presidential election at a polling station in Kampala, Uganda, Thursday, Jan. 15, 2026. (AP Photo/Brian Inganga)

A supporter of leading opposition candidate Bobi Wine cheers while watching election officials count ballots, after polls closed at a polling station in Kampala, Uganda, Thursday, Jan. 15, 2026. (AP Photo/Brian Inganga)