Trump believes he can deploy tariffs without tradeoffs or distortions. In reality, each new tariff move creates both.

Toyota has expressed optimism following the announcement of a new trade agreement between the United States and Japan.

Japan's Honda stock jumped more than 11%, while Toyota surged over 15%. Shares of South Korean carmaker Hyundai and Kia also rose on the announcement. Shares of Japanese automakers surged after Japanese Prime Minister Shigeru Ishiba said that U.S. auto tariffs were lowered to 15% from the current 25%, Reuters reported.