President Donald Trump on Sept. 4 signed an order to implement a trade agreement with Japan that is expected to increase U.S. agricultural sales by $8 billion a year.
Over the past five years, Japan has bought on average just under $12.9 billion in annual farm goods from the U.S.
In detailing the agreement, the White House cited, “Critically, unlike any other agreement in American history, the Government of Japan has agreed to invest $550 billion in the United States.”
Those investments will be chosen by the U.S. government and are expected to “generate hundreds of thousands of United States jobs, expand domestic manufacturing, and secure American prosperity for generations.”
Spelling out agricultural trade, the order stated, “Specifically, the government of Japan is working toward an expedited implementation of a 75% increase of United States rice procurements within the minimum access rice scheme and purchases of United States agricultural goods, including corn, soybeans, fertilizer, bioethanol (including for sustainable aviation fuel), as well as other United States products, in amounts totaling $8 billion per year.”
Rice sales to Japan average more than $300 million a year in value, and are currently up 16% in 2025 compared to last year.
USA Rice commented, “We appreciate the President’s efforts to expand markets for U.S. rice and we look forward to working with our partners in Japan to increase our market access in what is already a top 5 market for our exporters, and to participating in the remaining FY2025 rice tenders that predate these latest announcements.”
While noting the sales of sustainable aviation fuels, the U.S. last year only produced about 20 million gallons. Japan has a goal to use 10% sustainable aviation fuel in its commercial airlines by 2030.
The American Soybean Association said the agreement “helps further secure a top ten market for our crop. In Marketing Year 2023/2024, Japan imported $1.31 billion of U.S. soy products, making the country U.S. soy’s sixth largest trading partner by volume, according to USDA’s Foreign Agricultural Service.”
Under the deal, the U.S. will set a baseline 15% tariff on nearly all Japanese imports to the U.S., though there will be separate sector tariffs for automobiles and auto parts, aerospace products, generic pharmaceuticals, and some natural resources.
Japan also agrees to accept U.S. automobiles without additional safety testing requirements and bill buy U.S.-made commercial aircraft and military equipment.
Agriculture Secretary Brooke Rollins, in a social media post, called the deal a “HUGE win for America’s farmers & ranchers.” Rollins indicated she would be traveling to Japan in the next few weeks. — Jerry Hagstrom, DTN political correspondent and Chris Clayton, DTN ag policy editor
