WASHINGTON (AP) — President Donald Trump has announced a trade framework with Japan, placing a 15 percent tax on goods imported from that nation.

“This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,” Trump posted on Truth Social, adding that the United States “will continue to always have a great relationship with the Country of Japan.”

The president said Japan would invest “at my direction” $550 billion into the U.S. and would “open” its economy to American autos and rice.

The 15 percent tax on imported Japanese goods is a drop from the 25 percent rate that Trump, in a recent letter to Japanese Prime Minister Shigeru Ishiba, said would be levied starting Aug. 1.

Ishiba acknowledged the new trade agreement, saying it would benefit both sides and help them work together.

Certain details remained unclear from his post, such as whether
Japanese-built autos would face a higher 25 percent tariff that Trump imposed on the sector.

As the Aug. 1 deadline for the tariff rates in his letters to world leaders is approaching, Trump also announced a trade framework with the Philippines that would impose a tariff of 19 percent on its goods, while American-made products would face no import taxes. The president also reaffirmed his 19 percent tariffs on Indonesia.

The Trump administration says the revenues from tariffs will help reduce the budget deficit and more factories will relocate to America to avoid the import taxes and cause trade imbalances to dissipate.

The U.S. ran a $69.4 billion trade imbalance on goods with Japan last year, according to the Census Bureau.

America had a trade imbalance of $17.9 billion with Indonesia and an imbalance of $4.9 billion with the Philippines.