Trade deal with Japan includes U.S. ag

Japan commits to increasing ag purchases by $8 billion

A recently implemented trade agreement between the U.S. and Japan includes good news for the American ag sector.

The United States-Japan Agreement includes a commitment from Japan to increase its purchases of American agricultural products.

“Specifically, the Government of Japan is working toward an expedited implementation of a 75 percent 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,” a Sept. 4 White House press release says.

In 2024, the U.S. exported almost $12 billion of agricultural goods to Japan, making it the fifth-largest destination for U.S. farm products.

This trade deal and its implications for U.S. ag has received support from multiple parties.

Agriculture Secretary Brooke Rollins, for example, called the development a “huge win for America’s farmers & ranchers,” on her X account, adding she’ll be in Japan soon to build on this agreement.

The American Soybean Association (ASA) welcomes the stronger partnership with Japan.

U.S. farmers require market access, which this trade agreement provides, said Caleb Ragland, president of the ASA.

“Reliable agreements like this not only strengthen markets for U.S. soy and keep America’s farm families a priority, but also help our farmers remain competitive in the global marketplace,” he said in a Sept. 5 statement.

In addition, Japan agreed to a 15 percent tariff on car imports into the U.S., and to invest $550 billion in U.S. projects.

The U.S. and Japan agreed to the trade deal in July.