President Trump said on Tuesday that the US and Japan had reached a trade deal. “We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump wrote in a Truth Social post. The president said the agreement includes a 15% tariff on imported goods from Japan,

Seoul will take a close look at the terms of a U.S.-Japan trade deal, South Korea's industry minister said on Wednesday, holding out the prospect of greater cooperation in the energy and industrial sectors ahead of key trade talks in Washington.

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

Asia-Pacific markets traded higher on Wednesday following Tuesday’s announcement by US President Donald Trump of a major tariff deal with Japan, including a 15% levy on Japanese exports, while US–China trade talks are also gaining momentum ahead of the August 12 deadline.

President Trump announced Tuesday that his administration had wrapped up a massive trade agreement with Japan, two weeks after threatening the US ally with 25% tariffs.

Japan's top tariff negotiator, Ryosei Akazawa, said on Saturday he planned to visit Washington next week to hold further ministerial-level talks with the United States. Tokyo hopes to clinch a deal by an August 1 deadline that will avert President Donald Trump's tariff of 25% on imports from Japan.

The LDP’s loss in the upper house is another blow to Prime Minister Shigeru Ishiba, who has been struggling to close a trade deal with the Trump administration.

GBP/USD is having a tough time reclaiming 1.3500 on Tuesday as markets adopt a cautious stance. In the absence of high-tier data releases, investors refrain from taking large positions, while keeping an eye on Trump-Powell drama and US tariff talks.