The United States and Japan have struck a trade agreement that sets a flat 15% tariff on Japanese goods entering the U.S., including automobiles, in exchange for a pledge by Tokyo to channel about $550 billion into U.S. investments. President Donald Trump, announcing the accord on his Truth Social platform and later at the White House, called it the largest trade deal ever signed with Japan and said the country would also open its market wider to U.S. farm products such as rice. Treasury Secretary Scott Bessent said Japan secured the reduced rate by proposing an “innovative financing mechanism” that will back the investment package, while Commerce Secretary Howard Lutnick remarked that Tokyo had effectively “bought” itself a lower auto tariff. The agreement leaves the existing 50% duty on Japanese steel unchanged and comes just days before an August 1 deadline when higher U.S. tariffs were set to take effect. Financial markets welcomed the deal. Japan’s Nikkei 225 jumped roughly 3.5%, led by double-digit gains in Toyota, Honda and Mazda, and U.S. equity futures advanced more than 0.4%. European auto stocks also rallied on hopes Brussels can negotiate similar terms. Currency moves were more muted, with the yen briefly firmer before paring gains amid political uncertainty in Tokyo. Reaction from U.S. industry was mixed. The American Automotive Policy Council, which represents General Motors, Ford and Stellantis, said a 15% levy on fully imported Japanese vehicles still disadvantages North American production that faces higher duties under existing rules. Trump signalled that attention will now shift to talks with the European Union, Indonesia and other partners as Washington seeks further tariff accords.