Toyota shares in surged by more than 15 per cent while Honda jumped more than 12 per cent, after the new agreement lowered tariffs on car imports and spare parts
The Nikkei 225, Japan’s benchmark stock index, climbed 3.9pc to its highest level in a year, as the US agreed to cut tariffs on the world’s fifth largest economy from a proposed 25pc to 15pc from August 1.
In exchange, Japan will press ahead with a $550bn (£406.5bn) package of US-bound investment and loans.
Japan’s car sector accounts for more than a quarter of its exports to the US and President Trump has previously expressed frustration at the imbalance of trade in the motoring sector.
He said last week: ‘They sell us millions and millions of cars a year. We sell them no cars because they won’t accept our cars. And they won’t accept much of our agriculture either.’
Yet despite this, the USA’s biggest car company, General Motors, has reported that tariffs have cost it over US $1bn already.
Announcing the trade deal overnight, President Trump wrote on Truth Social: ‘I just signed the largest TRADE DEAL in history with Japan.
‘This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan.’
