President Trump will get to decide where to invest Japanese money and the United States will keep 90 percent of the profits, the White House said.

In his characteristic way, Trump says his Japan announcement is "massive", describing it as "the largest trade deal in history". He also claims his breakthrough meeting with Philippine President Ferdinand Marcos Jr was "beautiful".

The trade group representing the traditional Big Three US automakers is objecting to the US agreement with Japan, saying it would be unfair to American automakers and parts suppliers.

Wall Street climbed Wednesday after President Donald Trump reached a trade deal with Japan and hopes rose for more agreements by August 1.

Japan is the world's fourth largest economy, meaning it accounts for a large part of global trade and growth. Tokyo imports a great deal of energy and food from overseas and is dependent on exports including electronics, machinery and motor vehicles. The US is its biggest export market.

Trade pact would lower tariffs on car imports from Japan to 15% from 25%, spurring hope that other countries could get similar deals.

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.

President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between allies and major trading partners that appeared elusive just weeks ago.

Japan's trade agreement with the U.S. could serve as the benchmark for many other deals currently being negotiated with Washington, and the global economy could just about support the 15% level agreed overnight,