Washington: Japan has agreed to purchase 100 Boeing aircraft and billions of dollars in agricultural and other products, alongside a 75 percent increase in imports of U.S. rice as part of a new trade deal, according to the White House.

According to Lao News Agency, the “U.S.-Japan Strategic Trade and Investment Agreement” includes Japan’s commitment to buy US$8 billion in U.S. goods, such as corn, soybeans, fertilizer, bioethanol, and sustainable aviation fuel. The deal was announced by U.S. President Donald Trump, who stated that his administration will apply a 15 percent “reciprocal” tariff on Japanese products, which is 10 percentage points lower than previously announced.

The agreement also entails Japan investing $550 billion to rebuild and expand core American industries, marking the largest foreign investment commitment ever secured by any country. This investment is expected to generate hundreds of thousands of U.S. jobs and bolster domestic manufacturing. At the direction of President Trump, these funds will be used to enhance America’s strategic industrial base, focusing on areas like energy infrastructure, semiconductor manufacturing, critical minerals, pharmaceuticals, and shipbuilding.

The White House highlighted that the U.S. will retain 90 percent of the profits from this investment. The deal also promises significant market openings across key sectors. A notable expansion of U.S. energy exports to Japan is anticipated, along with 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 created a sense of urgency in South Korea, which is looking to secure exemptions or relief from the new reciprocal tariffs and sector-specific duties on steel, aluminum, and automobiles, as these could significantly affect Korea’s export-reliant economy.