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.

Trump said the U.S. will impose a 15% tariff on Japanese imports under the agreement, which he hailed as "maybe the largest deal in history."