05:38 AM EDT, 07/23/2025 (MT Newswires) -- Toyota Motor ( TM ) and Honda Motor ( HMC ) shares surged more than 12% and 10%, respectively, during premarket Wednesday, following the completion of a significant trade agreement between the US and Japan.

The deal reduces tariffs on Japanese auto exports to the US from the previously threatened 25% to 15%, multiple news outlets reported, quoting US President Donald Trump.

According to Trump, the agreement includes a reciprocal 15% tariff on imports from Japan, along with a commitment from Japan to invest $550 billion into the US economy.

Trump also highlighted that Japan will open its market to US trade, including automobiles, trucks, rice and other agricultural products, the reports said.

The agreement also aims to create hundreds of thousands of jobs, according to Trump, the media outlets reported.