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."
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 17th of January, covering the latest developments you need to ...
More than 3,000 people have been killed in Iran’s nationwide protests, according to rights activists, as monitors reported a slight return of intern...
Mongolia has introduced a new decree to strengthen traditional Mongolian medicine and expand its international profile....
Ukrainian President Volodymyr Zelenskyy said on Friday that allied supplies of air defence systems and missiles were insufficient as Russia prepares n...
Poland plans to expand its armed forces to 500,000 by 2039, including 300,000 active-duty troops and 200,000 reservists, officials said Friday. The en...
Ukrainian President Volodymyr Zelenskyy said on Friday that allied supplies of air defence systems and missiles were insufficient as Russia prepares new large-scale attacks.
Poland plans to expand its armed forces to 500,000 by 2039, including 300,000 active-duty troops and 200,000 reservists, officials said Friday. The enlarged force would feature a new high-readiness reserve unit.
Kyiv is facing its most severe wartime energy crisis, with the capital receiving only about half the electricity it needs, Mayor Vitali Klitschko told Reuters on Friday.
White House announced on Friday the formation of a technocratic committee to oversee the transition of power in the Gaza Strip as part of President Donald Trump's 20-point plan to end the conflict in the territory.
At least four people were injured after a large fire and explosions hit a residential building in the Dutch city of Utrecht, authorities said.
A railway power outage in Tokyo disrupted the morning commute for roughly 673,000 passengers on Friday (16 January) as two main lines with some of the world's busiest stations were halted after reports of a fire.
Russian President Vladimir Putin has warned that the international situation is worsening and that the world is becoming more dangerous, while avoiding public comment on events in Venezuela and Iran.
A SpaceX capsule carrying a four-member crew home from orbit in an emergency return to earth necessitated by an undisclosed serious medical condition afflicting one of the astronauts splashed down safely early on Thursday (15 January) in the Pacific Ocean off California.
President Donald Trump announced Thursday evening that the long-awaited “Board of Peace” to oversee Gaza’s reconstruction has officially been formed.
The UK economy grew more strongly than expected in November, according to official figures, offering signs of resilience after months of weak performance.
China recorded the world’s largest-ever trade surplus in 2025, reaching $1.2 trillion as exporters shifted focus away from the U.S. amid ongoing trade tensions.
A coalition of women’s rights organisations, technology watchdogs and progressive campaigners is urging Apple and Google, owned by Alphabet, to remove the social media platform X and its associated chatbot, Grok, from their app stores.
Boeing booked more aircraft orders than Airbus in 2025 for the first time since 2018, official figures showed, even as the European manufacturer delivered more planes during the year.
U.S. oil major Chevron and private equity firm Quantum Capital Group are reportedly preparing a joint bid to acquire Lukoil’s international assets, as the sanctioned Russian energy company seeks to divest its overseas operations.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment