Asia Springs Forward on “Massive” Japan Deal
President Donald Trump on Tuesday stateside announced a “massive” deal with Japan that includes “reciprocal” tariffs of 15% on the country’s exports to the U.S., with auto duties reportedly being lowered to that level as well.
In Japan, markets ballooned Wednesday, with the Nikkei 225 popping 1,396.4 points, or 3.5%, to 41,171.32.
In a post on Truth Social, Trump called the agreement “perhaps the largest Deal ever made,” while adding that Japan would invest $550 billion in the United States and the U.S. would “receive 90% of the Profits.”
Trump said that Japan will “open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things.”
The U.S. president added that the deal would create “Hundreds of Thousands of Jobs.”
Following Trump’s post, Japanese Prime Minister Shigeru Ishiba said that auto tariffs on Tokyo will be lowered to 15% — from the current 25% that is levied across countries — as part of the deal, Reuters reported. Auto exports to the U.S. are a cornerstone of Japan’s economy, making up 28.3% of all shipments in 2024, according to customs data.
Japanese auto exports to the U.S. fell 26.7% in June, extending May’s 24.7% plunge. The country’s overall exports to the U.S. — its second largest trading partner — stood at 10.3 trillion yen ($70.34 billion U.S.) between January and June, a 0.8% year-on-year drop.
Shortly after Tuesday’s announcement, Japan’s top trade negotiator, Ryosei Akazawa, said ”#Mission Accomplished,” in a post on X, and expressed “heartfelt thanks to everyone involved,” according to a Google translation of his remarks in Japanese.
Shares in Japan’s Honda rose over 8%, while Toyota climbed above 11%. Nissan jumped more than 8%, and Mazda Motor surged 17%. Mitsubishi Motors popped 13%.
In Hong Kong, the Hang Seng gained 408.04 points, or 1.6%, to 25,538.07.
In other markets
In Shanghai, the CSI 300 inched ahead 0.81 points to 4,119.77.
In Korea, the Kospi index recovered 13.83 points, or 0.4%, to 3,183.77.
In Singapore, the Straits Times index nicked ahead 23.02 points, or 0.6%, to 4,231.28.
In Taiwan, the Taiex index hiked 330.75 points, or 1.4%, to 23,318.67.
In New Zealand, the NZX 50 lost 39.67 points, or 0.3%, to 12,794.06.
In Australia, the ASX 200 strengthened 59.98 points, or 0.7%, to 8,737.16.
