Trump announces 'massive' trade deal with Japan

President Donald Trump says the US has agreed to a "massive" trade deal with Japan, one of the country's largest trading partners.

Japan has agreed to invest $550 billion (£407 billion) in the US, while its goods sold to America will be taxed at 15% when they reach the country, below the 25% tariff Trump had threatened.

Trump stated on social media that Japan would open its economy to U.S. goods, including cars, trucks, rice, and certain agricultural products.

Japan's Prime Minister Shigeru Ishiba welcomed the announcement, saying it was "the lowest figure to date among countries with trade surpluses with the US".

"I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan," Trump touted at a White House event on Tuesday evening.

"They had their top people here, and we worked on it long and hard. And it's a great deal for everybody. I always say it has to be great for everybody. It's a great deal," he added.

Ishiba said on Wednesday the agreement would mean US tariffs on vehicles and parts would be cut to 15% from 25%.

However, the tax is above the 10% Trump levied on Japan and other countries when he suspended higher so-called reciprocal tariffs between April and July.

Ishiba said: "We were the first in the world to reduce tariffs on cars and auto parts without any quantity restrictions."

UK cars sent to the US are taxed at a lower 10% rate when they reach American shores, but this is limited to a 100,000 vehicle quota.

Ishiba added: "The agreement does not include any reduction of tariffs on the Japanese side."

The BBC has contacted the White House and Japan's embassy in Washington for more details of the trade agreement.

Bringing its main tariff rate down to 15% is Japan's "best compromise at this stage", Shigeto Nagai from research firm Oxford Economics told BBC News.

The planned investment in the US by Japan included in the announcement "will be a huge boost to restore the US, fitting in with Trump's story of reviving US manufacturing with more jobs," he added.