Investors in Japanese stocks breathed a sigh of relief following a deal with the U.S. to lower tariffs on imports. Toyota Motor stock surged by nearly 14%, outpacing the S&P 500 index. Japan and the U.S. agreed to reduce tariffs on auto imports from 27.5% to 15%, benefiting the crucial auto sector.

The 27.5% tariff was set during the Trump administration’s trade efforts. Japan also committed to a $550 billion investment package into the U.S. The auto sector makes up a quarter of Japan’s exports to the U.S., with Toyota being a key player. The company operates 11 manufacturing plants in the U.S.

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Read more at Yahoo Finance: Why Toyota Stock Zoomed Nearly 14% Higher on Wednesday