Japan and the United States have reached a trade deal with the “reciprocal” tariff rate set at 15%, U.S. President Donald Trump announced Tuesday.

The president did not mention sector-specific tariffs currently in place, including a 25% levy on vehicles and auto parts and 50% on steel and aluminum.

NHK reported the overall tariff rate on autos will be 15%, citing unnamed Japanese officials. The rate is half of the 25% rate, which went into effect in April, combined with a 2.5% duty on autos charged independent of Trump tariffs, according to the broadcaster.

“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,” Trump wrote on Truth Social, while describing the agreement as “perhaps the largest deal ever made.”

“Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,” he added.

Prime Minister Shigeru Ishiba told reporters on Wednesday morning in Tokyo that he will receive a briefing on the deal, and that he will talk to Trump either in person or over the phone, if necessary.

“I believe this will contribute to Japan and the United States working together to create jobs and promote high-quality manufacturing, thereby fulfilling various roles on the global stage moving forward,” Ishiba said.

The surprise breakthrough comes just ahead of an Aug. 1 deadline set by Trump in which the reciprocal rate for Japan was set to rise to 25%, up from the baseline 10%. It also comes just days after Ishiba’s ruling coalition suffered a defeat in an Upper House election, losing its majority in the chamber.

In recent weeks, Trump has expressed frustration with Japan and the pace of negotiations with the country, at one point threatening to take the reciprocal rate as high as 35%.

Japan had previously eyed a meeting between Ishiba and Trump at the Group of Seven summit in June to reach a framework deal, but auto tariffs have been a major sticking point.

The U.S. president announced the deal after a reported meeting at the White House with Ryosei Akazawa, Japan’s chief tariff negotiator, who arrived in Washington on Monday for an eighth round of negotiations with the Trump administration.

Akazawa met with U.S. Commerce Secretary Howard Lutnick for more than two hours Monday evening and Treasury Secretary Scott Bessent for about 30 minutes Tuesday afternoon, according to the Cabinet Secretariat and NHK.

Japan’s benchmark Nikkei 225 stock index rose about 2% after opening in the morning while the yen strengthened.