The stock exchange is happy, and how in the automotive industry? Japan reacts to a reduction in American duties

Trade agreement between Washington and Tokyo, reducing customs rates from 25 percent. up to 15 percent For goods imported from Japan to the USA, it caused a wave of growth on the Japanese stock exchange. However, the Japanese automotive industry, crucial for the economy of this country, reacted with cautious optimism.

The Japanese Prime Minister Shigeru Ishiba accepted the agreement with satisfaction on Wednesday, calling them the trailer of the “new Golden Era for Japan and the USA,” the world media said.

This assessment was reflected on the Japanese stock exchange, where the main car manufacturers' actions recorded a significant increase. The price of Toyota shares increased by 14.34 percent, Honda by over 11 percent, and Nissan recorded an increase of 8.28 percent.

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While the reduction is a relief in relation to earlier, higher rates, the lack of immediate official statements on the main part of Japanese car manufacturers, such as Toyota, Honda and Nissan, testifies to their awaiting attitude.

The Japanese Association of Car Manufacturers (Jama) also did not issue an official commentary on the agreement, which reflects the tendency to Japanese business in the face of the changing trade landscape. Jama's earlier statements emphasized significant investments of Japanese car manufacturers in the USA, marking their role as significant employers and entities contributing to the development of the American economy.

However, as the Japanese negotiator, the Minister of Economic Revivalry Ryosei Akazawa, the concluded agreement does not include 50 % duties on steel and aluminum. This raised concerns among Japanese manufacturers of car parts who use these materials. Industry representatives indicated that although a reduction in customs duties is a positive signal, the duties on steel and aluminum are a continuous challenge for this sector and can affect production costs and competitiveness.

The value of imports from Japan to the United States last year amounted to $ 148 billion, of which about $ 58 billion was cars, car parts and other automotive products. Other main products imported from Japan are commercial electronics, industrial machines, pharmaceuticals, chemicals, seafood and tea.

Krzysztof Pawliszak (PAP)

KRP/ SAN/