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