Japan will invest $550 billion into the U.S., and goods from the country will be subject to a 15% tariff, President Trump said. Japan has not commented on the reported deal.

In a letter to Japanese Prime Minister Shigeru Ishiba earlier this month, Trump said the US will charge Japan 25 per cent reciprocal tariffs, a percentage point higher than what Trump initially announced. He has also said that his government will impose 25 per cent tariffs on Korea.

President Donald Trump on Tuesday said he had cinched a trade deal with Japan, reducing the tax he had planned to levy on imports from a major trading partner as the deadline he has imposed for negotiations over tariffs nears.