US, Japan Strike $550B Trade Deal, Stocks Surge

The United States and Japan have reached a major trade deal lowering tariffs on Japanese goods imported to the US from a threatened 25% to 15%, while keeping 50% tariffs on steel and aluminum in place. Japan will invest $550 billion in the US and open its markets further to American cars, trucks, rice, and other agricultural products. President Donald Trump and Japanese Prime Minister Shigeru Ishiba praised the agreement as historic, forecasting a 'new golden era' for bilateral relations. The announcement spurred a surge of over 3.5% in Japanese stock indices, notably benefiting automakers like Toyota and Honda. Investors welcomed the deal as reducing trade uncertainty and benefiting both countries, though some terms remain to be finalized. The agreement has also raised prospects for further US trade deals with other partners.