Trump's tariff deal offers scant relief for Japan automakers
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BIG NEWS! The U.S. and Japan have reached a trade agreement that will reduce tariffs on Japanese vehicles and auto parts to 15 percent-down from the 25 percent rate that was set to take
Toyota has expressed optimism following the announcement of a new trade agreement between the United States and Japan.
The deal reduces tariffs on Japanese exports, including autos and auto parts, to15 percent, in exchange for Japanese investment and import commitments.
Japan's Honda stock jumped more than 11%, while Toyota surged over 15%. Shares of South Korean carmaker Hyundai and Kia also rose on the announcement. Shares of Japanese automakers surged after Japanese Prime Minister Shigeru Ishiba said that U.S. auto tariffs were lowered to 15% from the current 25%, Reuters reported.
Japan trade deal boosts Japanese equities and benefits Franklin FTSE Japan ETF, but faces issues with tariffs and market trends. Click for my FLJP update.