Shares have surged in the automobile industry after the U.S. agreed a deal to lower tariffs this week with Japan, triggering a sharp rally in Japanese equity markets. It's after President Donald Trump and Japan's lead negotiator Ryosei Akazawa made the agreement on Tuesday (22 July).
The announcement Tuesday evening sent Japan's benchmark Nikkei stock index climbing almost 4% to its highest in a year, led by stocks in automakers with Toyota (7203.T), more than 14% and Honda (7267.T) nearly 11%.
Shares in major automakers surged: Toyota rose more than 14%, Honda gained 11%, while Mazda and Subaru both advanced more than 17%. Japan’s Topix index closed up 3.2%. The yen weakened slightly, trading at ¥146.8 against the dollar.
The trade deal lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans.
It is the most significant of a clutch of agreements that Trump has bagged since unveiling sweeping global levies in April.
It comes ahead of a 1 August deadline by the Trump administration to conclude bilateral tariff talks.
Industry reaction
Japanese manufacturers broadly welcomed the outcome. However, some American industry representatives raised concerns.
“Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles is a bad deal for U.S. industry,” said Matt Blunt, President of the American Automotive Policy Council.
President Trump claims the deal will improve U.S. access to Japan’s market for vehicles, rice, and other agricultural goods.
In exchange, Japan will face a 15% tariff on exports to the U.S. which is lower than the previously threatened 27.5%, but higher than the 10% interim rate applied during negotiations.
Trump also confirmed that Japan had agreed to form a joint venture with the U.S. on a long-proposed liquefied natural gas project in Alaska.
The deal was concluded just days after Japan’s ruling party suffered a setback in upper house elections. Japanese media have reported that Prime Minister Ishiba may step down in the coming weeks, though he has publicly denied such plans.
Japanese Prime Minister Shigeru Ishiba welcomed the outcome, noting that the auto tariff reduction came without quotas and represents “the lowest figure among countries with a trade surplus with the U.S."
Kremlin aide Yuri Ushakov has confirmed that the proposed peace plan was not discussed during recent talks in Abu Dhabi. Despite speculation surroundi...
A fire engulfed a residential building in Hong Kong's northern Tai Po district on Wednesday afternoon, with thick grey smoke billowing from the scene....
British finance minister Rachel Reeves is likely to announce tens of billions of pounds of new tax increases on Wednesday in a budget that puts her cr...
Russian President Vladimir Putin was welcomed in Bishkek on Wednesday as he began a three-day state visit to Kyrgyzstan ahead of a Collective Security...
Two 15-year-olds have asked Australia’s High Court to strike down a forthcoming ban on social media use by under-16s, arguing the law breaches the c...
Kremlin aide Yuri Ushakov has confirmed that the proposed peace plan was not discussed during recent talks in Abu Dhabi. Despite speculation surrounding the meeting, Ushakov clarified that the key topic of peace negotiations was not on the agenda.
A fire engulfed a residential building in Hong Kong's northern Tai Po district on Wednesday afternoon, with thick grey smoke billowing from the scene.
Russian President Vladimir Putin was welcomed in Bishkek on Wednesday as he began a three-day state visit to Kyrgyzstan ahead of a Collective Security Treaty Organisation summit.
Two 15-year-olds have asked Australia’s High Court to strike down a forthcoming ban on social media use by under-16s, arguing the law breaches the country’s implied freedom of political communication ahead of its 10 December start.
The Hayli Gubbi volcano in north-eastern Ethiopia erupted on Sunday for the first time in over 12,000 years, before halting on Monday, according to the Toulouse Volcanic Ash Advisory Center.
Venezuela says it has deployed a range of weapons, including decades-old Russian-made equipment, and plans to mount guerrilla-style resistance in the event of an air or ground assault particularly from the U.S.
U.S. President Donald Trump has told his advisers that he plans to speak directly with Venezuelan President Nicolas Maduro according to Axios, as Washington designated him as the head of a terrorist organisation on Monday. A claim Maduro denies.
Chinese President Xi Jinping has once again expressed strong support for Venezuelan President Nicolás Maduro, condemning foreign interference and criticising U.S. actions in the region.
The United States is preparing to launch a new phase of Venezuela-related operations in the coming days, four U.S. officials told Reuters, as the Trump administration escalates pressure on President Nicolas Maduro.
European Union ministers will urge senior U.S. trade officials to implement more elements of the July EU–U.S. trade deal on Monday, including cutting tariffs on EU steel and lifting duties on goods such as wine and spirits.
Google has announced a major update for its Pixel 10 series: owners can now send and receive files with Apple devices using AirDrop, without any collaboration from Apple. The new functionality applies to iPhones, iPads, and macOS devices, though for now it is limited to the Pixel 10 line.
European shares climbed on Thursday, as a relief rally swept through global markets after artificial intelligence (AI) bellwether Nvidia reported strong earnings, while investors awaited the release of delayed U.S. jobs data.
Mainland China and Hong Kong equities slipped on Tuesday, Reuters reported, as investors grew cautious ahead of delayed U.S. economic data expected to clarify the Federal Reserve’s policy outlook.
A federal jury in California ruled on Friday that Apple must pay $634 million to Masimo, a medical-monitoring technology company, for infringing a patent related to blood-oxygen reading technology.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment