Trump strikes tariff deal with Japan, auto stocks surge

U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans, Reuters reports. 

Japan's critical autos sector, which accounts for more than a quarter of its U.S. exports, will see existing tariffs cut to 15% from 25%. Duties that were due to be imposed on other Japanese goods from August 1 will be cut by the same amount, according to Reuters.

The announcement sent Japan's benchmark Nikkei stock index climbing over 3% to its highest in a year, led by stocks in automakers with Toyota up more than 14% and Honda nearly 12%, according to Reuters.

"I just signed the largest TRADE DEAL in history with Japan," Trump said on his Truth Social platform. "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," he added.