The agreements have been overshadowed by U.S. firms issuing warnings about how the tariffs will affect their bottom lines and prolong uncertainty in the U.S. economy.

The president imposed tariffs on Japan, one of America’s closest allies, that would have been alarming just months ago. And markets went up.

Japan secured a tariff cap and pledged $550B in U.S. investments, with protections on semiconductors and pharmaceuticals under the new trade deal.

The S&P 500 and the Dow followed their global counterparts higher on Thursday, and Treasury yields reversed their three-day slide after a trade deal between the United States and Japan provided a welcome sign of progress in President Donald Trump's multi-front tariff negotiations.

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.

President Donald Trump announced new trade deals with Japan, Indonesia and the Philippines as the Aug. 1 trade deadline set by Trump inches closer.

Japan's embattled prime minister Shigeru Ishiba, fresh off a crushing defeat in upper house elections over the weekend, will not be in a position of strength to negotiate a favorable trade deal with the U.S., analysts said.

Japanese Prime Minister Shigeru Ishiba's future hangs in the balance amid internal party opposition and ongoing tariff negotiations with the U.S. Ishiba plans to announce his next steps following the talks' conclusion.