The U.S. and Japan have reached a trade agreement under which the longtime U.S. will face a 15% tariff—down from a previously threatened 25%—President Donald Trump announced on Tuesday, as Japan’s Prime Minister hailed the move as a “new golden era” in the relationship between the two countries.

Global shares have rallied, with Tokyo's benchmark Nikkei 225 index finishing 3.5% higher after Japan and the U.S. announced a deal on President Donald Trump's tariffs.

Japanese shares soared on Wednesday after President Donald Trump said he had struck a trade deal with Tokyo. The flagship Nikkei 225 index closed 3.5% higher, with car stocks including Toyota, Honda,