Japan to buy 100 Boeing jets, boost US defense purchases under new trade deal
The Trump administration has reached a new trade agreement with Japan under which the country will purchase 100 Boeing aircraft and significantly increase its annual purchases of US defense equipment.
The new agreement was announced by US President Donald Trump on July 23, 2025, the White House confirmed in a statement.
Under the new deal, Japan will invest $550 billion directed by the US to “rebuild and expand core American industries.” The United States will retain 90% of the profits from this investment.
“This is the single largest foreign investment commitment ever secured by any country and will generate hundreds of thousands of US jobs, expand domestic manufacturing, and secure American prosperity for generations,” the White House statement read.
According to the White House, this agreement delivers “breakthrough openings across key sectors.” In the manufacturing and aerospace segment, Japan has committed to purchase US-made commercial aircraft, which includes a deal for 100 Boeing aircraft.
Japan will also increase its annual purchases of US defense equipment by “additional billions of dollars” to enhance interoperability and reinforce alliance security in the Indo-Pacific area.
“This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the country of Japan,” Trump announced in a Truth Social post on July 23, 2025.
As part of this agreement, imports from Japan will face a standard tariff rate of 15%, reduced from the existing 25% applied to other countries.
However, Japan’s Prime Minister Shigeru Ishiba told local reporters that the ongoing tariff negotiations were a key factor behind the agreement between the two countries. Ishiba noted that these discussions enabled him to maintain the tariff rate at 15%.
“We have been working to reach an agreement that is consistent with the national interests of both Japan and the United States while protecting what needs to be protected,” Ishiba told Japanese outlet Nikkei. “This is the result of our consistent advocacy and lobbying the US for investment rather than tariffs.”
The White House concluded its statement by saying that “this agreement is not merely a trade deal” but rather a “strategic realignment of the US-Japan economic relationship”.
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The Trump administration has reached a new trade agreement with Japan under which the country will purchase 100 Boeing aircraft…
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