Shares in Japanese, South Korean automakers surge on Tokyo trade deal
Shares of Toyota, the world's top automaker by sales, jumped 13 per cent while rival Honda advanced more than 9 per cent. The lower tariff - from 25 per cent previously - would ease the pain for Japan's most important industry in its most crucial market.
South Korean automakers gained on hopes Seoul would clinch a similar deal. Both Hyundai Motor and Kia rose more than 6 per cent.
The agreement with Japan, the world's fourth-largest economy and a pivotal US ally in Asia, is by far the most significant among several trade deals struck by the White House ahead of an Aug 1 deadline when higher levies are due to kick in.
While Trump did not give details on the auto 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 per cent from 25 per cent on autos, which account for more than a quarter of Japan's exports to the US.
Still, it is unlikely to be all smooth sailing for Asian automakers.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
So far, tariffs from Canada and Mexico remain in place at 25 per cent. Mexico in particular is a key production hub for Japanese automakers, including Nissan, and also home to a Kia factory. Nissan shares were up almost 9 per cent.
News of Japan's trade deal is also likely to pile pressure on Seoul to come up with its own agreement ahead of the Aug 1 deadline.
Seoul is taking a close look at the US-Japan deal, South Korea's industry minister said. South Korea is a major competitor of Japan in areas such as autos and steel. It heads into high-level trade with the United States on Friday.
For both Japan and South Korea, the auto industry provides major exports, millions of manufacturing jobs and is a deep source of national pride.
Even with tariffs, the US remains by far the most important market for Toyota, Hyundai, Honda, Nissan and others. At Toyota and Hyundai alone, North America accounts for at least 40 per cent of the revenue, filings show.
The US is Toyota's biggest market in terms of vehicles. It sold 2.3 million vehicles there in 2024, including its Lexus brand, accounting for more than a fifth of its global total.
As a source of revenue, North America was second only to Japan in the last financial year. Meanwhile, Hyundai's North American revenue was the highest in almost a decade last year. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
8 minutes ago
- CNA
Rallying-Tanak handed five minute penalty and suspended points deduction
Hyundai's world rally championship leader Ott Tanak has been handed a five-minute penalty and a suspended 35-point deduction after an incident with a scrutineer at Rally Finland. Stewards reported that the Estonian stopped for tyre checking as directed at the end of Friday's stage seven but then accelerated abruptly before being given the signal to depart. The car's front bumper struck a scrutineer, who suffered minor injuries. Tanak was ruled to be in breach of the International Automobile Federation's sporting code regarding unsafe conduct, failure to follow scrutineer instructions, and misconduct. The time penalty dropped the driver to 29th overall in Finland, with the rally finishing on Sunday. The website reported that Tanak had apologised and told a hearing on Friday evening that his car had cooling problems after he hit a tree on the seventh stage and he had wanted to keep the car moving to avoid overheating. Tanak is one point clear of Toyota's Elfyn Evans in the championship.
Straits Times
38 minutes ago
- Straits Times
India will continue to buy Russian oil, government sources say
India will keep purchasing oil from Russia despite U.S. President Donald Trump's threats of penalties, two Indian government sources said, not wishing to be identified due to the sensitivity of the matter. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Trump last month indicated in a Truth Social post that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters that he had heard that India would no longer be buying oil from Russia. The New York Times on Saturday quoted two unnamed senior Indian officials as saying there had been no change in Indian government policy, with one official saying the government had "not given any direction to oil companies" to cut back imports from Russia. Reuters reported this week that Indian state refiners stopped buying Russian oil in the past week after discounts narrowed in July. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," India's foreign ministry spokesperson Randhir Jaiswal told reporters during a regular briefing on Friday. Jaiswal added that India has a "steady and time-tested partnership" with Russia, and that New Delhi's relations with various countries stand on their own merit and should not be seen from the prism of a third country. Top stories Swipe. Select. Stay informed. Singapore Opening of Woodlands Health has eased load on KTPH, sets standard for future hospitals: Ong Ye Kung Singapore $3b money laundering case: MinLaw names 6 law firms taken to task over involvement in property deals Asia KTM plans new passenger rail service in Johor Bahru to manage higher footfall expected from RTS Singapore HSA investigating teen allegedly vaping on MRT train Singapore New vehicular bridge connecting Punggol Central and Seletar Link to open on Aug 3 Singapore New S'pore jobs portal launched for North West District residents looking for work near home Singapore Tengah facility with over 40 animal shelters, businesses hit by ticks Business Property 'decoupling' illegal if done solely to avoid taxes: High Court The White House in Washington did not immediately respond to requests for comment. Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022, when Western sanctions were first imposed on Moscow, due to lower Russian exports and steady demand, sources said earlier this week. The country's state refiners - Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd - have not sought Russian crude in the past week or so, four sources familiar with the refiners' purchase plans told Reuters. INDIA'S TOP SUPPLIER On July 14, Trump threatened 100% tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35% of India's overall continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35% of India's overall supplies, followed by Iraq, Saudi Arabia and the United Arab the world's third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up 1% from a year ago, according to data provided to Reuters by sources. Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major month, Reuters reported that Nayara's chief executive had resigned after the imposition of EU sanctions and company veteran Sergey Denisov had been appointed as CEO. Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported late last month. REUTERS
Straits Times
2 hours ago
- Straits Times
Excitement, concern at send-off for S'pore's Columbia-bound freshmen amid US political uncertainty
The campus protests and recent political turmoil had no impact on their decision to apply to Columbia, a few freshmen told The Straits Times. SINGAPORE - The wide-eyed Ivy League prospects milled about, exchanging pleasantries and exuberant hellos at a Columbia University send-off for Singapore freshmen on Aug 2. But this year's iteration of the annual tradition, held at the function room of the Horizon Towers condominium in Leonie Hill, differed slightly from past editions. It took place in the wake of a much-publicised crackdown by the US government on the country's elite universities over accusations of anti-Semitic behaviour on campuses and bias in diversity, equity and inclusivity (DEI) initiatives. This followed a wave of pro-Palestinian protests on US campuses in 2024, prompted by the outbreak of the Gaza war between Israel and Palestinian militant group Hamas in October 2023. For Columbia, negotiations with the Trump administration ended on July 23, with the school agreeing to pay more than US$200 million (S$255 million) to the US government as settlement, in exchange for the re-instatement of federal funding which had been cancelled in March. But the campus protests and recent political and financial turmoil had no impact on their decision to apply to the New York school, a few students told The Straits Times at the event organised by the Columbia Singapore Students Association (SSA). The event had about 15 attendees. One outgoing freshman, who did not wish to reveal her name, said: 'I believe that a lot of institutions have recently had massive protests. But at the end of the day, you get the same quality education, world-class professors, and opportunities. 'In the grand scheme of things, these events don't impact your education to a degree that you would think they do.' Another remained upbeat, saying: 'I'm excited but also nervous about the whole idea of going to college. It's about exposing yourself to new things, new people, new friends, new activities, and stepping outside your comfort zone.' In May, the Trump administration asked its overseas missions to cease scheduling fresh appointments for student and exchange visitor visa applicants. The move, said Reuters, came as the administration sought to ramp up deportations and revoke student visas as part of its wide-ranging efforts to fulfil the US leader's hardline immigration agenda. Top stories Swipe. Select. Stay informed. Singapore Opening of Woodlands Health has eased load on KTPH, sets standard for future hospitals: Ong Ye Kung Singapore New vehicular bridge connecting Punggol Central and Seletar Link to open on Aug 3 Singapore New S'pore jobs portal launched for North West District residents looking for work near home Singapore HSA investigating teen allegedly vaping on MRT train Asia KTM plans new passenger rail service in Johor Bahru to manage higher footfall expected from RTS Singapore Tengah facility with over 40 animal shelters, businesses hit by ticks Business Property 'decoupling' illegal if done solely to avoid taxes: High Court Singapore 60 years of building Singapore Part of those efforts also included tightening the vetting of foreign students' social media accounts in a bid to identify any who may pose a threat to the US' national security. Two freshmen told ST that they would be switching their Instagram accounts to 'public' before entering the US, to facilitate such checks. They added that they did not mind doing so. One SSA committee member who is a current Columbia student and did not wish to reveal his name, told ST that some of the matriculating students 'have shared some concerns, including visa and safety issues, and whether or not they may be able to express themselves freely'. He added that the club is hoping to support them as they navigate the transition to university abroad amid the current climate. Other American universities, including Duke University and several campuses in the University of California system, are still being investigated by the Trump administration. Even at Columbia, the environment remains somewhat cautious ahead of the new academic year which begins in September. The campus is gated and security forces are omnipresent, another SSA committee member who is also a current Columbia student, added. 'Most people know that the situation is very sensitive and tense,' he said. 'It's about juggling that tension, while still being at school and trying to live like a normal university student.'
