Trump on Tuesday announced a deal with Japan that sets tariffs on the nation’s imports at 15 per cent, including for autos — by far the biggest component of the trade deficit between the countries.

On Tuesday, the US president agreed on trade deals with Japan and the Philippines, and issued a statement detailing the terms of the trade deal with Indonesia. His 'Liberation Day' tariffs will become effective August 1,

That rate is lower than the 24% that Trump threatened Japan with on April 2 and the 25% that he said he would hit Japanese imports with in a letter on July 7. Before Trump's current term, the effective U.S. tariff rate on Japanese imports was less than 2%, according to World Bank data.