U.S.-Japan trade deal raises hopes of an EU tariff breakthrough
Vehicles are mounted in one line in the BMW factory in Leipzig.
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The shares of the best automobile manufacturers in Europe rose on Wednesday after increasing the hopes of a tariff breakthrough for other major exporters of the US and Japan’s box office records.
One post Trump in Social, the social media platform, described the “big” trade agreement “perhaps the greatest agreement ever made”.
The agreement is expected to mean that the tariffs and parts of the United States will fall to 15% in imported Japanese vehicles, which is a significant decrease in the current 25% of the countries.
Japanese Prime Minister Shigeru Ishiba welcomed the trade agreement, according to Reuters.
Germany Volkswagen– BMW And Mercedes-Benz Group Shortly after the opening of European markets, the news increased by more than 4%. Luxury car manufacturer Porsche increased by 7.1%.
French car parts manufacturer Valeo 4%with Jeep Maker Stellantis 5.4 %.
In a speech following the social task, Trump said that the United States and Japan made an additional agreement containing the Lycifiye Natural Gas of the “Coming of Europe” without specifying details.
The automotive sector is considered acutely vulnerable to tariffs, especially considering the high globalization of supply chains and its heavily reliability of production operations in North America.
In Japan, automatic exports to the USA is very important to the health of the world’s fourth largest economy, which constitutes 28.3% of all posts in 2024. Customs Data.
Citi Economist Katsuhiko Aiba, Washington and Tokyo’s agreement to reduce mutual and automobile tariffs to 15%, said other major automobile exporters may affect the course of negotiations.
“It is noteworthy that automatic exports for a large automatic export country that can have an impact on negotiations with the EU and South Korea,” AIBA is in a research note. He said.
The European Union has long been trying to make an agreement with the US to reduce automatic tariffs.
However, Trump recently tried to increase the pressure on the 27-nieiton block by threatening EU imports to increase the imports to the United States if no agreement has been reached before then.
– CNBC’s Lim Hui Jie contributed to this report.
