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

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 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 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.

Japan's top tariff negotiator, Ryosei Akazawa, met with U.S. President Donald Trump at the White House on Tuesday, the Asahi newspaper reported on Wednesday. Akazawa is visiting Washington to hold further talks with the United States,

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.