President Trump on Tuesday announced that his administration had reached an agreement with Japan on trade, which would see the U.S. impose a 15 percent tariff on Japanese goods.

Trump posted on Truth Social that Japan would invest $550 billion in projects in the United States, though he did not specify what those investments would entail. He also said Japan would open its markets to U.S. automobiles, rice and other agricultural products.

Japan will also pay a 15 percent tariff to export its goods into the United States, Trump said. That is lower than the 25 percent tariff Trump had threatened to impose on Japan beginning Aug. 1.

“This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan,” Trump posted.

Japan is one of the United States’s largest trading partners. The U.S. exported roughly $80 billion in goods to Japan in 2024, while Japan exported roughly $148 billion to the United States.

Trump has been announcing a series of trade deals with other nations leading up to Aug. 1, when he has threatened to raise tariffs on trading partners. The increase in tariffs comes after the president had backed off sweeping “reciprocal” tariffs against dozens of other nations.

The president earlier Tuesday announced the contours of a trade agreement with the Philippines after its leader met with Trump in the Oval Office. The White House has previously touted agreements with the United Kingdom, Indonesia and Vietnam, as well as a framework with China.