U.S. President Donald Trump on Tuesday said the U.S. and Japan have struck a deal that will lower the hefty tariffs Trump had threatened to impose on goods from its Asian ally while extracting commitments for Japan to invest $550 billion US in the United States and open its markets to American goods.

The administration hopes to use the threat of tariffs and access to the U.S. economy to stop countries from imposing new taxes, and tariffs on U.S. tech firms