Japan auto stocks soar on report of lower tariffs — Toyota jumps 11%

• Stocks of Japan's Honda jumped 8.42%, while Toyota climbed 9.97%.
• Nissan jumped over 7%, and Mazda Motor surged over 16%.
• While NHK reported that the 15% tariffs will apply to Japanese makes, it is unclear if the reduced rate will be extended to other automakers.

Shares of Japanese automakers surged after U.S. auto tariffs were reportedly lowered to 15% from the current 25%, according to public broadcaster NHK, citing a Japanese official.

Stocks of Japan's Honda jumped more than 8%, while Toyota rose above 11%. Nissan jumped over 8%, and Mazda Motor surged over 17%. Mitsubishi Motors popped over 13%.

Stocks of South Korean carmaker Hyundai also rose over 6% on the announcement, while Kia was up 0.2%.

While NHK reported that the 15% tariffs will apply to Japanese makes, it is unclear if the reduced rate will be extended to other automakers.

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 to the U.S. are a cornerstone of Japan's economy, making up 28.3% of all shipments in 2024, according to customs data.

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.