The agreement - including a 15% tariff on all imported Japanese goods, down from a proposed 25% - is the most significant of the string of trade deals the White House has reached ahead of a August 1 deadline for higher levies to kick in.

Japan will invest $550 billion into the U.S., and goods from the country will be subject to a 15% tariff, President Trump said. Japan has not commented on the reported deal.

The 15% tax on imported Japanese goods is a meaningful drop from the 25% rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting Aug. 1.

Trump said the U.S. will impose a 15% tariff on Japanese imports under the agreement, which he hailed as "maybe the largest deal in history."

Trump will host Philippine President Ferdinand Marcos Jr. at the White House today. White House press secretary Karoline Leavitt said yesterday that the two leaders could discuss trade and the upcoming Aug. 1 tariff deadline.

Asian shares have rallied, with Tokyo's benchmark Nikkei 225 index up more than 3% after Japan and the U.S. announced a deal on President Donald Trump's tariffs.

In comparison with the 25% tariff Trump slapped on Tokyo earlier this month, a 15% tariff seems like a big improvement.

President Trump on Tuesday announced that his administration had reached an agreement with Japan on trade, which would see the U.S. impose a 15 percent tariff on Japanese goods. Trump posted on Truth Social that Japan would invest $550 billion in projects in the United States,

President Donald Trump announced a trade framework with Japan on Tuesday, placing a 15% tax on goods imported from that nation.

Citi economist Katsuhiko Aiba said the U.S.-Japan trade deal could influence the course of talks with other major auto exporters, namely the EU and South Korea.