The U.S. and Japan reached a trade deal, resulting in a 15% tariff which was better than expected, causing complaints from U.S. carmakers. The deal will impact U.S. carmakers with higher rates on imported input costs and components. Toyota’s stock rallied 11.8% this week due to the news, despite no major company-specific updates. The agreement lowers tariffs on Japanese imports, including Toyota cars, which could significantly affect the auto market. U.S. automakers are concerned about the deal’s impact on their competitiveness, as they also import components tariffed at 50%. Investors should monitor Toyota’s earnings report in August for further clarity on the situation.

Read more at Yahoo Finance: Why Toyota Motor Rallied This Week