President Donald Trump reached a trade deal with Japan that will impose 15% tariffs on US imports from the country, including its auto sector, while creating a $550 billion fund backed by the Japanese to make investments in America.

The agreement - including a 15% tariff on all imported Japanese goods, down from a proposed 25% - is the most significant of the string of trade deals the White House has reached ahead of a August 1 deadline for higher levies to kick in.

U.S. President Donald Trump on Tuesday announced a “massive” trade deal with Japan featuring reciprocal 15% tariffs on the country’s exports to the U.S. and a reported cut in auto duties.