Shares in Japanese, South Korean carmakers jump on Tokyo trade deal
Shares of Toyota, the world's top carmaker by sales, jumped 13% while rival Honda advanced more than 9%. The lower tariff, from 25%, would ease the pain for Japan's most important industry in its most crucial market.
South Korean carmakers gained on hopes Seoul would clinch a similar deal. Hyundai Motor and Kia rose more than 6%.
The agreement with Japan, the world's fourth-largest economy and a pivotal US ally in Asia, is the most significant among several trade deals struck by the White House ahead of an August 1 deadline when higher levies are due to kick in.
While Trump did not give details on the car portion of the deal in a post on his Truth Social platform, industry and government officials briefed on the agreement said it lowers the tariff to 15% from 25% on cars, which account for more than a quarter of Japan's exports to the US.
However, it is unlikely to be all smooth sailing for Asian carmakers. Tariffs from Canada and Mexico remain in place at 25%. Mexico in particular is a key production hub for Japanese carmakers, including Nissan, and also home to a Kia factory. Nissan shares were up almost 9%.
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