Japan’s $1 trillion investment promise to the U.S. failed to prevent a trade fallout, as President Trump imposed a 25% tariff on Japanese imports, calling Japan “spoiled.” Despite efforts to protect agricultural markets and reduce auto tariffs, negotiations stalled. The breakdown came after a fruitless G7 meeting and ahead of Japan’s elections. Experts warn this could hurt Japan’s economy and force companies to reduce U.S. dependency. Talks for a new deal are ongoing but face steep hurdles.