US-Japan trade deal averts worst for global economy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2025
0mins
Source: Reuters
US-Japan Trade Agreement: Japan's trade deal with the U.S. reduces auto import tariffs from 27.5% to 15%, setting a potential benchmark for future agreements and easing investor concerns about rising tariffs, particularly ahead of critical deadlines for the EU and China.
Market Reactions and Economic Implications: The agreement has positively impacted financial markets, with significant gains in Japanese and European automaker stocks, while also suggesting that average tariffs could stabilize around 15%, potentially alleviating inflation fears and influencing U.S. Federal Reserve interest rate decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
