Tonight, President Donald Trump announced a landmark trade deal with Japan, the U.S.'s fifth largest trading partner. Japan will pay 15% reciprocal tariffs, down from the dreaded 25%, and invest $550 billion in the US. This agreement opens the Japanese market to U.S. cars, trucks and agricultural products, unleashing bullish sentiment in stock markets. Japanese automakers, including Toyota $7203 (+3,62%) , Honda $7267 (+4,06%) and Nissan $7201 (+2,65%) , saw their shares rise 8% or more on the Japanese stock market.
For Toyota, this is a gamechanger. Toyota Motor Corporation (TM) shares closed at $191.55 on July 23, 2025, an impressive 12.7% jump from the previous close at $169.99. This share price rise reflects optimism about better access to the Japanese market and lower tariffs, further bolstering the profit margins of Toyota's hybrid vehicles - a key revenue source. Analysts predict a continued rally, supported by Toyota's strong position in North America and a record $15 billion payout to shareholders this year. Despite earlier concerns about scandals and tariff pressure, Toyota now seems poised to take advantage of this deal.
Investors are cheering the deal, considered one of the largest trade deals ever. With a stable outlook and a market capitalization of $221.6 billion, Toyota remains a top choice for investors looking to capitalize on this new economic momentum. The market is now eagerly awaiting further details from the White House and the impact on other sectors. This is the time for a bullish run!