Toyota and Honda Shares Rise as the US Considers Reducing Tariffs on Canadian Vehicles

Toyota and Honda shares rose after information spread that the US is considering reducing tariffs on automobiles produced in Canada.

According to sources familiar with the negotiations, the Trump administration is considering reducing the tariff from 25% to 15%. Tariffs on Canadian steel and aluminum, currently at 50%, may also be reduced to 25%.

On the Tokyo Stock Exchange, Toyota shares rose 3.7% to 3,050 yen, while Honda shares gained 1.5% and reached 1,737 yen.

Both companies own factories in Ontario, so lower tariffs on automobiles shipped from Canada to the US would reduce their costs.

A final decision has not yet been made and terms may change during the negotiation process. Washington and Ottawa are working to resolve trade disputes before the US-Mexico-Canada trade agreement undergoes broad review next year.

Source: Investing.com