Shares of Asian carmakers climbed Tuesday after US President Donald Trump said he was considering tariff exemptions on imported vehicles and auto parts.
Japanese manufacturers Toyota Motor Co., Honda Motor Co. and Suzuki Motor Corp. surged about 5% in early Tokyo trade, with Korean maker Hyundai Motor Co. and its affiliate Kia Corp. both jumping more than 4% at one point.
The rally eased pressure on auto stocks after Trump imposed a 25% levy on car imports to the US on April 2, and fueled hopes of some support to the broader stock market. Car manufacturers were the biggest contributor to gains in Japan’s broader Topix Index, which was up as much as 1.5% in early trade. Korea’s Kospi Index rose as much as 0.6%.
Trump is beginning to show a “slightly more flexible stance on tariffs,” which is helping to support share prices, said Hideyuki Ishiguro, chief strategist at Nomura Asset Management Co. An exemptions for automakers would have a “significant positive impact” on Japanese stocks, as many companies are heavily dependent on exports to the US, he said.
600 back on the table? Seems like Trump is caving in more now and approaching a softer tone. 🇺🇲