CARMICHAEL COMPASS: ISSUE 25-033 – July 28, 2025

Fact Sheet Released Regarding Japanese Trade Deal

On July 23, 2025, the White House published a fact sheet regarding the in-progress trade deal with Japan.

The details of the trade deal, according to the fact sheet, include:

  • Japan to invest $550 billion to rebuild and expand core American industries such as:
    • Energy infrastructure and production
    • Semiconductor manufacturing and research
    • Critical minerals mining, processing, refining
    • Pharmaceutical and medical production
    • Commercial and defense shipbuilding
  • U.S. will retain 90% of the profits from this investment
  • 15% reciprocal tariff rate for Japanese-origin goods
  • Japan to open access to U.S. exports in the following areas:
    • Agriculture and food (rice, corn, soybeans, fertilizer, bioethanol, and sustainable aviation fuel)
    • Energy
    • Manufacturing and aerospace
      • Purchase of 100 Boeing aircraft
      • Additional purchases of U.S. defense equipment
    • Automobiles and industrial goods
      • Restrictions on U.S. cars and trucks to be lifted
      • Broader openings for a range of industrial and consumer goods

It should be noted that while Japan’s Prime Minister has said in the case of automobiles that the 15% is a 2.5% most-favored nation rate plus an additional 12.5% tariff, no such mention of this was made in the fact sheet.

Trade Deal Announced with EU

On July 27, President Trump announced that a trade deal had been reached with the EU.

This deal will include the EU purchasing $750 billion worth of U.S. energy and investing an additional $600 billion in the U.S, on top of any existing investments. They will also purchase an as-of-yet undetermined amount of U.S. military equipment. As far as tariffs are concerned, the EU will lower its tariff rates on U.S.-origin goods to 0%, while the U.S. will apply a 15% tariff across the board for EU-origin goods, including automobiles. Steel and Aluminum products, at this time, will remain subject to the 50% Section 232 tariffs upon entry to the U.S.