US President Donald Trump’s recent trade deal with Japan has sparked a surge in Japanese auto stocks, with companies like Toyota and Honda seeing significant gains. The agreement reduces tariffs on Japanese auto imports to 15%, down from a threatened 25%, and secures $550 billion in Japanese investment in the US. This move has led to a 2.4% rally in the Nikkei share average, with the Tokyo Stock Exchange’s transport equipment index surging 8.4%. Toyota Motor’s shares soared 10.9%, while Honda’s shares rose 11.15% in some markets. The new tariff rate of 15% applies to Japanese auto imports, a decrease from the previously proposed 25% rate. Japan has pledged $550 billion in investments in the US, potentially boosting the American economy. Japanese auto stocks, including Toyota and Honda, have seen significant gains following the announcement of the trade deal.
