Germany’s auto giants rally as U.S.-Japan trade deal raises hopes of a tariff breakthrough
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Diverging Reports Breakdown
Germany’s auto giants rally as U.S.-Japan trade deal raises hopes of a tariff breakthrough
Shares of Europe’s top carmakers rose on Wednesday after the U.S. and Japan’s blockbuster trade agreement. Germany’s Volkswagen, BMW and Mercedes-Benz Group were all up more than 5%. Porsche soared 8%. Milan-listed shares of Jeep maker Stellantis was also up around 6.8%.
Shares of Europe’s top carmakers rose on Wednesday after the U.S. and Japan’s blockbuster trade agreement raised hopes of a tariff breakthrough for other major exporters.
In a post on social media platform Truth Social, Trump described the “massive” trade agreement as “perhaps the largest Deal ever made.”
The deal is expected to mean U.S. tariffs on imported Japanese vehicles and parts will fall to 15%, a significant drop from the existing 25% rate that is levied across countries.
Japanese Prime Minister Shigeru Ishiba welcomed the trade agreement, saying it marks “the lowest figure among countries that have a trade surplus with the U.S.,” according to Reuters.
Germany’s Volkswagen , BMW and Mercedes-Benz Group were all up more than 5% on the news at 9:32 am London time (4:32 am ET), while luxury automaker Porsche soared 8%.
Milan-listed shares of Jeep maker Stellantis was also up around 6.8%.
The gains followed a sharp upswing for Japanese autos stocks. Toyota surged over 14%, with domestic peers Honda and Nissan up 11% and 8%, respectively.
In a speech that followed his Truth Social post, Trump said the U.S. and Japan were concluding an additional deal involving liquified natural gas, adding that “we have Europe coming in tomorrow,” without specifying details.