Official White House Photo by Daniel Torok
U.S. Lowers Tariffs on Japan as Tokyo Stock Market Surges Following New Trade Deal
Japanese equities soared on Wednesday after U.S. President Donald Trump announced a new bilateral trade agreement with Japan that includes a 15% tariff on Japanese exports to the United States—lower than previously expected punitive rates.
The Nikkei 225 jumped 3.51%, closing at 41,171, while the broader Topix index rose 3.18% to 2,926, both reaching one-year highs as investors reacted to the news.
🔹 Key Points of the Agreement:
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A reduced 15% tariff on Japanese exports to the U.S.
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A commitment from Japan to invest $550 billion in the U.S. economy
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Opening of Japanese markets to key American exports, including agriculture and industrial goods
The deal sparked broad gains in the Tokyo Stock Exchange, led by automakers:
- Toyota Motor surged 14.3%
- Honda Motor climbed 11.2%
- Nissan Motor rose 8.3%
Financials, consumer goods, and industrials also saw strong performance, reflecting growing investor optimism over improved bilateral trade relations.
In contrast, tech stocks lagged, mirroring overnight losses in the U.S. technology sector.
Meanwhile, Japanese Prime Minister Shigeru Ishiba denied media speculation that he might step down depending on the outcome of trade negotiations with Washington.
“My commitment is to safeguard Japan’s strategic interests,” Ishiba said in a brief statement.
This new trade framework is seen as a pivotal moment in U.S.–Japan economic relations, signaling a shift from confrontation to collaboration, and positioning Japan as a long-term strategic investor in the U.S. economy.
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NEWSROOM
