Trump announces a massive pact with Japan that includes reciprocal tariffs of 15%.

President Donald Trump announced a "massive" agreement with Japan on Tuesday night, helping to allay fears of an escalating trade war between the United States and one of its closest allies in Asia.

In his signature style, Trump wrote on social media that he "made the biggest deal in history" with Tokyo. This involves reciprocal tariffs of 15% on that country's exports to the U.S.

In his message, he also noted that Japan will invest $550 billion in the United States, adding that the U.S. will receive 90% of the profits from these investments, without offering further details.

He also explained that Japan "will open its country to American trade, including cars and trucks, rice, and other agricultural products."

The 15% reciprocal tariff is lower than the 25% the White House recently threatened in its letter to the Japanese government. It was unclear whether Japan would receive a suspension of the separate national security tariffs, set at 25% for automobiles and 50% for steel and aluminum.

These tariffs, especially on vehicles, were a sticking point in negotiations for months. Trump offered no explanation. This announcement caused the Japanese stock market to soar, especially the shares of auto companies, as well as Asian markets.

Some of these agreements, such as those with the United Kingdom and Vietnam, appear to be more like draft agreements, with provisions still to be negotiated. At a later event in Washington with Republican lawmakers, the president maintained that "we've worked long and hard on this, and it's a great deal for everyone."

He added that they are in talks with Japan to form a joint venture in Alaska related to liquefied natural gas, a possible reference to a $44 billion plan called Alaska LNG that aims to ship natural gas from that North American territory to buyers in Asia.

The president indicated at the event that his administration will meet again this Wednesday with representatives of the European Union (EU), hoping to sign an agreement while the bloc also seeks to avoid steep tariffs that would begin on August 1. He suggested a deal may be in sight.

Japanese Prime Minister Shigeru Ishiba told reporters Wednesday morning (Tuesday evening in the US) that he had received an initial report on the progress of the trade agreement from Ryosei Akazawa, his chief negotiator, who is in the US capital. "I will have a document on the details soon, and we will review it carefully," he added, without confirming Trump's comments.

Akazawa posted on social media: "I went to the White House, mission accomplished, thank you all." But he also didn't mention any details about the agreement announced by the US president.

In another post, Treasury Secretary Scott Bessent praised the prime minister and his negotiator for working to ensure “a mutually beneficial partnership,” celebrating what he called “the golden age of Trump.”