Washington, 23 July 2025 (dpa/MIA) - US President Donald Trump on Tuesday said that a trade agreement deal was reached with Tokyo, which will see Japan "pay Reciprocal Tariffs" of 15% on goods exported to the United States.

"We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump said in a post on his Truth Social platform.

Trump said that Japan agreed to invest $550 billion into the US, "which will receive 90% of the Profits." He did not provide details on how the arrangement would work.

"This Deal will create Hundreds of Thousands of Jobs - There has never been anything like it," the post continued. "Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things."

Japan was facing 25% tariffs on exports to the US from August 1 had a deal not been struck, as per a letter sent by Trump to Japanese Prime Minister Shigeru Ishiba on July 7. The figure was one percentage point higher than the one Trump had announced in early April before enacting a 90-day pause.

Following Trump's announcement, Tokyo's stock market posted strong gains.

Japan's business newspaper Nikkei noted that it remained unclear how the sector-specific tariffs on automobiles and auto parts — currently at 25% — would be applied under the new deal.

Japan's chief tariff negotiator Ryosei Akazawa had focused on lowering those tariffs, as vehicles represent Japan's largest export sector to the US.

MIA file photo