Investors worried as Trump announces 'massive' Japan trade deal

Tokyo: Donald Trump announced Tuesday a massive trade deal withJapan, marking a key breakthrough for major US trade partners as they scramble to str...

Tokyo: Donald Trump announced Tuesday a "massive" trade deal with Japan, marking a key breakthrough for major US trade partners as they scramble to strike agreements before the end of the month.

In an attempt to slash his country's colossal trade deficit, the US president has vowed to hit dozens of countries with punitive "reciprocal" tariffs if they do not hammer out a pact with Washington by August 1.

The breakthrough makes Japan one of five countries to have signed an agreement -- along with Britain, Vietnam, Indonesia and the Philippines -- after Trump promised in April he would get "90 deals in 90 days".

"We just completed a massive Deal with Japan, perhaps the largest Deal ever made," he wrote on his Truth Social platform.

He said that under the deal, "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits".