Japanese stocks rocketed to a one-year high after Tokyo struck a headline-grabbing trade deal with Washington, slashing auto tariffs to 15% and triggering a global market bounce. The Nikkei jumped 3.5%, with Mazda soaring nearly 18% and Toyota and Subaru not far behind. Investors cheered the breakthrough, which not only avoids a damaging tariff war but also unleashes $550BN in Japanese investment toward the US economy.

Donald Trump hailed the deal as a “massive win,” while European markets reacted with optimism, hoping for similar relief. The Euro Stoxx 600 climbed 1%, led by a 4% surge in auto shares and a 7% spike in Stellantis. Even South Korean automakers got a boost, with analysts anticipating parallel talks between Seoul and Washington.

As EU negotiators prepare to meet US officials, the clock ticks toward an August 1 deadline—now seen as a pivot point for global trade. With high-stakes diplomacy, market volatility, and investor bets all in play, this is more than a bilateral deal—it’s a tremor shaking the foundations of global trade.

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