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The agreement establishes a tariff cap of 15% on Japanese imports into the US, creating a more predictable and stabilized trading environment. Furthermore, the US has signaled intentions to pursue separate trade arrangements, including a deal with the Philippines featuring a tariff rate of 19%. These developments underscore a concerted effort by the US to strengthen economic ties with key Asian partners amidst ongoing global trade tensions.
Impact on the Japanese Economy and Stock Market
The immediate aftermath of the deal’s announcement was a surge in the Japanese stock market, illustrating investor confidence and optimism about future economic prospects. Car manufacturers in particular experienced substantial gains:
Mazda shares soared by 17.7%
Subaru increased over 16%