President Trump on Tuesday introduced a new trade framework with Japan, imposing a 15% tariff on Japanese imports and hailing the deal as a historic achievement.

“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,” Trump wrote on Truth Social. He added that the United States “will continue to always have a great relationship with the Country of Japan.”

Under the agreement, Japan will invest $550 billion into the U.S. economy “at my direction,” Trump stated. The deal also includes Japan’s commitment to “open” its markets to American automobiles and rice, according to the Associated Press.

The new 15% tariff represents a decrease from the 25% rate Trump had earlier proposed in a letter to Japanese Prime Minister Shigeru Ishiba. Nevertheless, key details remain unclear, including whether Japanese-made automobiles, a major U.S. import, will still face the higher 25% tariff. Reuters notes that vehicles account for over one-quarter of Japan’s exports to the United States.

In 2024, the U.S. recorded a $69.4 billion trade deficit in goods with Japan, according to Census Bureau data. The announcement comes ahead of broader tariff measures Trump has indicated will take effect on August 1.