Toyota Motor shares advanced 3.6% to ¥3,046 on Thursday, recovering from a two-day decline, as investors bet on improved trade conditions in North America.
The gains followed reports that the United States is considering reducing tariffs on Canadian steel, aluminum and automobiles, a move that would ease pressure on automakers shipping vehicles from Canadian plants into the U.S. market. The reports emerged late Wednesday, shortly after President Donald Trump said he would postpone a planned 50% tariff on Canadian imports.
Toyota and rival Honda Motor both operate significant manufacturing facilities in Canada, exporting finished vehicles to the U.S. Honda shares jumped nearly 5% on the day, helping to support a 0.8% rise in the Nikkei 225 index.
The automakers' rebound reflects growing optimism that trade tensions between the U.S. and Canada may ease, reducing costs and supply chain disruptions for North American-based producers.
