Markets and automakers react to major US–Japan deal
Illustrative photo: market reaction to Trump’s deal with Japan (Getty Images)
Markets quickly reacted to the trade agreement between the United States and Japan announced by US President Donald Trump, according to Reuters.
Japan's Nikkei index jumped by 2.6% amid a surge in automaker stocks.
This came after the announcement that the new agreement reduces auto tariffs from the proposed 25% to 15%. Meanwhile, shares of Mazda Motor rose by 17%, and Toyota Motor by 11%.
Meanwhile, Japanese government bonds declined. The response of the Japanese yen was more subdued, with the currency rising by just 0.1% to 146.42 per dollar.
According to the outlet, some automakers expressed concern over the trade deal.
Representatives of the group that includes General Motors, Ford, and Chrysler Stellantis voiced worries that the agreement would lower tariffs on car imports from Japan to 15%, while tariffs on imports from Canada and Mexico would remain at 25%.
Recent US trade deals
In addition to the agreement with Japan, Trump also announced deals with Indonesia and the Philippines, both of which impose 19% tariffs on goods imported from those countries.
Notably, in July, Trump announced a preliminary trade deal with Vietnam. The plan included reducing tariffs to 20%, down from the 46% he had threatened in April.
On April 9, Trump paused the introduction of tariffs for a number of countries, giving them 90 days to reach trade agreements.
