Toyota gains on Reuters report U.S. and Japan near deal to lower tariffs on cars

Published 04/09/2025, 10:08
© Reuters.

Investing.com -- Toyota shares climbed on Thursday following a report by Reuters that Japan and the United States are close to finalizing an agreement to lower tariffs on Japanese car imports.

Citing a Japanese government source, the report said the move is expected to take effect within 10 to 14 days of a U.S. presidential executive order.

The reduced tariff rate would see duties on Japanese automobiles cut from 27.5% to 15% by the end of this month, the report said, noting that the precise date to be written into the order is still under discussion and will ultimately be decided by U.S. President Donald Trump.

Toyota’s U.S.-listed shares were up 1.5% in premarket trading as of 05:03 ET (09:03 GMT). Honda stock (NYSE:HMC) also gained 1.2% on the report.

Tokyo has been pressing Washington to swiftly implement the auto tariff cuts and to clarify terms on other goods, amid confusion over the bilateral trade deal that has added to pressure on Prime Minister Shigeru Ishiba’s government.

During a meeting in Washington last month, Japan’s top trade negotiator Ryosei Akazawa urged U.S. Commerce Secretary Howard Lutnick to move quickly on the tariff cut for Japanese vehicles and parts.

Akazawa also sought confirmation and the “immediate execution” of both countries’ agreement on U.S. levies for other Japanese imports.

The deal, reached in July, outlined the U.S. commitment to reduce car tariffs to 15% from 27.5%, but at the time no implementation date was given.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.