(BFM Stock Exchange) – All the shares in the sector are progressing after Washington has established an agreement with Tokyo to reduce customs duties to 15%. The market believes that such a level of customs surcharge would be manageable for European manufacturers.
The trade agreement established between Japan and the United States is doping for risk on the stock market on Wednesday, July 23.
One sector particularly benefits: the automobile. Stellantis and Renault took 5.4% and 2.8% respectively, at the start of the session, while the forvia equipment manufacturers, Valeo, Opthobility won 5%, 4% and 3.6% respectively. In Frankfurt, BMW, Volkswagen and Mercedes-Benz all take between 4.8% and 5.7%.
Donald Trump announced in the night from Tuesday to Wednesday to a “huge” agreement with Japan which brings customs duties back to Japanese imports at 15%, much less than the 25% which threatened to strike the archipelago from August 1.
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Nissan and Toyota climb
This agreement preserves the Japanese automotive sector. Japanese car exports should have been taxed at 25%. Japanese Prime Minister Shigeru Ishiba made sure to divide this rate by two. These surcharges are added to the 2.5%preexisting customs duties, which resulted in a final rate of 15%.
Japanese car groups flew to the Tokyo Stock Exchange in reaction to these announcements. Nissan took 8% and Toyota climbed 14.3%.
“Japan’s trade surplus with the United States comes to around 80% of cars and automotive parts, which means that it is not only a reduction specific to a sector, but a relevant measurement at the macroeconomic level. A customs price of 15% remains a tax, but it is much better than the economic ball that weighed on Tokyo,” explains Stephen Innes of Spi am.
The markets hope that Europe will benefit from the same treatment as Japan. “The market hopes that the rate of 15% will also be able to apply to European automobile imports. When you discuss with German manufacturers, a rate of 15% appears manageable when that of 25% (rate applied to Europe for the moment, editor’s note) is punitive,” explains an analyst in the sector.
“There is also the idea that Trump reveals what can bring the sector in the hard time,” he continues.
A sector weighed down by customs duties
The automobile is particularly affected by customs duties. The sector is both concerned by customs duties hitting Mexico and Canada – manufacturers import many parts and vehicles from these two countries to the United States – by, more generally, surcharges against automobile imports and equipment, as well as by customs duties on steel and aluminum.
Even if, in April, Donald Trump had signed a decree to limit the “double sorrows”. And that imports of parts and vehicles from Mexico and Canada can see their from surcharge being reduced, provided they respect the free trade agreement between the three countries (agreement called “USMCA” for “United States Mexico CANADA Agreement).
Bernstein wrote in November that Stellantis and Volkswagen imported Mexico and Canada around 40% of volumes sold in the United States, a rate that drops around 30% for General Motors and around 25% for Ford.
Monday, Stellantis issued a major warning on results, announcing a net loss of 2.3 billion euros in the first half and 2.3 billion euros in cash burned over the same period. The Franco-Italian-American group then mentioned a net impact of 300 million euros linked to customs duties on the first half.
On Tuesday, General Motors indicated that customs duties had entrenched $ 1.1 billion to its adjusted operating profit in the second quarter.
Julien Marion – © 2025 BFM Bourse
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