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."
Iran's military vows more "devastation" over U.S. President Donald Trump's threat over the opening of the Strait of Hormuz,...
Hungarian Prime Minister Viktor Orbán called an emergency defence council on Sunday (5 April) after powerful explosives were discovered near...
Russia launched a drone attack on Ukraine's Black Sea port of Ode...
Start your day informed with the AnewZ Morning Brief. Here are the top storie...
Communities in Mexico have taken to the streets to protest against an ongoing oil spill in the Gulf of Mexico that has killed wildlife and damaged ...
Iran's military vows more "devastation" over U.S. President Donald Trump's threat over the opening of the Strait of Hormuz, as two people are reportedly killed in Israel after an Iranian a missile strike on Sunday as Trump praised the resuce of an airman in a high-risk mission from inside Iran.
Hungarian Prime Minister Viktor Orbán called an emergency defence council on Sunday (5 April) after powerful explosives were discovered near a pipeline in Serbia that carries Russian gas to Hungary.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 6 April, covering the latest developments you need to know.
Communities in Mexico have taken to the streets to protest against an ongoing oil spill in the Gulf of Mexico that has killed wildlife and damaged coral reefs over several weeks.
U.S. President Donald Trump threatened Iran's energy and transport infrastructure in a social media post containing expletives on Sunday (5 April), as he seperately gave Iran a deadline of Tuesday to reopen the Strait of Hormuz.
The crew of Artemis II mission are entering a pivotal phase of their journey, as they prepare to swing around the Moon and head back towards Earth. Now on the fifth day of their 10-day mission, the four astronauts are already witnessing views no human has ever seen.
The family of the late Virginia Giuffre have urged King Charles III to meet survivors of sexual abuse during his upcoming state visit to the United States.
Senegal has taken steps to curb government spending by banning non-essential foreign travel for ministers, as rising global oil prices place increasing pressure on the country’s finances.
A major gathering of Muslims in northern Paris will go ahead as planned after a French court overturned a government attempt to ban the event.
Major automakers showcased new electric vehicles at the New York Auto Show this week, under the slogan “electrification is the future." However, weakening demand in the United States and intense competition with China are raising questions for markets across the globe, including the South Caucasus.
The U.S. national average retail price of petrol rose above $4 a gallon for the first time in over three years on Monday (30 March), according to GasBuddy data, as the U.S.–Israeli war with Iran continued to roil global energy markets.
Japan and Indonesia will deepen coordination on energy security, Tokyo said, as the U.S.-Israeli war on Iran disrupts vital oil and gas flows to Asia.
China's three largest state-owned airlines have issued warnings regarding their financial outlook for the current year, acknowledging that the eruption of war involving Iran has driven jet fuel prices to unsustainable highs.
Stock markets across Asia fell on Monday as escalating conflict involving Iran drove oil prices sharply higher, fuelling fears of inflation and a potential global recession, with investors reacting to disruption risks in the Strait of Hormuz and prolonged hostilities.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment