President Donald Trump has announced a sweeping trade and investment pact with Japan that will impose a uniform 15% tariff on goods entering the United States while pledging a record-setting $550 billion of Japanese investment in U.S. energy, semiconductor, shipbuilding and other strategic industries. The White House described the accord as the largest foreign-investment commitment ever secured by Washington. In return, Japan will ease long-standing market barriers, including restrictions on U.S. automobiles, agricultural products and commercial aircraft, and the United States will cut its tariff on imported Japanese vehicles to 15% from 27.5%. The deal triggered a broad rally in equity markets. Tokyo’s Nikkei 225 jumped 3.5%, pushing the Topix index to a record high, while shares of Toyota, Honda and Nissan soared—Toyota at one point gained 16%, its biggest intraday advance since 1987. In New York, the S&P 500 rose 0.8% to its third straight record close, the Nasdaq set a fresh high, and the Dow Jones Industrial Average added more than 500 points. European automakers also climbed on expectations Brussels could strike a similar agreement, helping the Stoxx 600 Automobiles & Parts sub-index to its strongest session in two weeks. U.S. manufacturers reacted unevenly. Shares of General Motors, Ford and Stellantis rallied on hopes of further tariff relief, yet the companies and the United Auto Workers union warned the pact could allow Japanese rivals to undercut North American production that still faces levies of up to 25% from Canada and Mexico. Trade strategists said the agreement intensifies pressure on European negotiators, who are aiming to reach a 15% tariff framework with Washington before the administration’s 1 August deadline.