Posted originally on CTH on July 23, 2025 | Sundance

The Japanese essentially did not want to face a 25% tariff on automobiles exported to the USA.  At the same time, they did not want to permit full USA access to several sectors of their market.  The solution is quite remarkable.

Japan agrees to be the bank, to essentially finance any national security priority of President Trump to the tune of $55o billion.  In return, Japan gets a 15% tariff on automobiles, and 10% return on the profit of the ¹business they finance in the U.S.  Japan is essentially purchasing a lower tariff rate.

PRESIDENT TRUMP – “We just completed a massive Deal with Japan, perhaps the largest Deal ever made. Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%. 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. Thank you for your attention to this matter!”

Commerce Secretary Howard Lutnick explains:

EXAMPLE:  President Trump wants generic drug manufacturing in the USA.  U.S. company ‘Main Street Drugs’ agrees to build a $100 billion manufacturing plant.  Japan finances the building and company creation.  Main Street Drugs owns and operates the business, keeps 90% of the profits, Japan gets 10%.

Trump (USA) has $450 billion in financing left to spend on the next priority, perhaps a railroad connection or transit system.

Pretty cool, solution.