Trump: "Japan to invest $550 billion in the U.S. on my orders… 90% of profits go to us" [Comprehensive]

U.S. President Donald Trump announced that he had reached a 15% tariff agreement with Japan. While mentioning the creation of a large-scale investment fund for the U.S., he stated that nearly all of the profits from this would go to the United States. As pressure on U.S. allies yields results, it is expected to influence ongoing negotiations with South Korea.

On the evening of the 22nd (local time), President Trump wrote on Truth Social: "We have just completed a large-scale deal with Japan. Probably the biggest deal ever made."

He said, "Japan will invest $550 billion in the U.S. at my direction, and the U.S. will receive 90% of the profits," adding, "This deal will create hundreds of thousands of jobs." He continued, "There has never been such a deal. The most important point is that Japan will open its market on various items such as automobiles, trucks, rice, and certain agricultural products."

President Trump added, "Japan will pay a 15% reciprocal tariff to the U.S.," saying, "This is a very interesting time for the United States, and above all, it is more meaningful in that we will always maintain a good relationship with Japan."

Earlier this month, the U.S. reportedly demanded that South Korea create an investment fund worth $400 billion (about 550 trillion won) during negotiations. This was an attempt to apply the investment model proposed in negotiations with Japan to South Korea as well. Although the detailed terms—such as the structure of Japan's promised investment fund, the main investor, and whether the profits actually go to the U.S.—have yet to be disclosed, it is presumed that private companies’ participation was expected since government-led investments of this scale are considered difficult. However, since South Korean companies are currently unable to promise investment at the same level as Japan, the government is facing increased concerns.

On the same day, President Trump also announced a 19% tariff on the Philippines, 1 percentage point lower than the previously announced 20% reciprocal tariff. This matches the tariff rate applied to Indonesia (19%) and is slightly lower than that for Vietnam (20%).

Washington = Special Correspondent Lee Sang-eun selee@hankyung.com