Shares of Japanese automakers pumped after U.S. President Donald Trump announced a trade deal with Japan, lowering the previously discussed 25% auto tariffs on Japanese vehicles to 15%.
Honda (HMC) surged 9.8%, Toyota (TM) jumped 13.9%, Nissan (7222.T) gained over 5%, and Mazda (7261.T) soared 17.7%. Mitsubishi Motors (7211.T) rose over 12%.
According to Japan’s NHK, the revised tariff structure includes a 12.5% cut plus a 2.5% “Most Favored Nation” base rate. The move comes as Japanese auto exports to the US have suffered, plunging 26.7% in June.
Trump hailed the deal as the “largest Deal ever,” claiming Japan would invest $550 billion in the US and allow greater access to its markets, including for American autos, trucks, and agricultural goods.