Recently imported brand new unregistered Honda cars are parked in a storage yard at the Port of Bristol on January 15, 2025 near Bristol, England.
Anna Barclay | Getty Images
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.
Stocks of Japan’s Honda jumped more than 8%, while Toyota rose nearly 12%. Nissan jumped over 8%, and Mazda Motor surged over 17%. Mitsubishi Motors popped over 13%.
Shares of South Korean carmaker Hyundai also rose over 6% on the announcement, while Kia was up 0.2%.
While the 15% tariffs will apply to Japanese makes, it is unclear if the reduced rate will be extended to other automakers.
The original 25% tariff was halved to 12.5%, not before adding a 2.5% “Most Favored Nation” base tariff, taking the total to 15%, according to a Google translation of a report by Japan’s public broadcaster NHK.
U.S. President Donald Trump previously announced a 25% tariff on all imported vehicles on March 26, which went into effect on April 2.
Auto exports accounted for 28.3% of all Japanese shipments to the U.S. in 2024, according to customs data, making it a cornerstone of Tokyo’s economy.
Recent data from the trade ministry showed that Japan’s exports of automobiles, which include cars, buses and trucks, had taken a hit. The country’s automobile exports to the U.S. fell 26.7% in June following May’s 24.7% plunge.
While this is “very good news” for Japanese automakers, the country’s auto industry faces other challenges, said Ed Rogers, CEO of Rogers Investment Advisors, who cited competition from Chinese and South Korean carmakers.
“But this does provide some very needed short-term assurance that U.S. tariffs will be manageable.”
U.S. President Donald Trump announced Tuesday stateside that he had struck what he called the “largest Deal ever” with Japan, featuring 15% “reciprocal” tariffs on Japanese exports to the U.S.
Posting on Truth Social, Trump also claimed that Japan would invest $550 billion into the U.S., and that America would receive “90% of the Profits.”
He added that Japan also agreed to open its market to a broader range of U.S. goods, including automobiles, trucks, rice, and other agricultural products.
— CNBC’s Lim Hui Jie contributed to this report.