Overview

• The agreement cuts U.S. import duties on Japanese vehicles from 25% to 15% in a reciprocal deal.
• Shares of Toyota, Honda, Nissan, Mazda and Mitsubishi rose between 8% and 16% following the announcement; Hyundai and Kia also recorded gains.
• Officials have not specified whether the reduced rate will extend to non-Japanese carmakers.
• President Trump hailed the pact as the “largest Deal ever,” claiming $550 billion in Japanese investments and broader market access for U.S. goods.
• Vehicle exports accounted for 28.3% of Japan’s U.S. shipments in 2024, underscoring the economic significance of tariff relief.