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.

Trump said late Tuesday that Japan would be subject to a 15% tariff, significantly lower than the 27.5% rate currently in place for many other foreign cars, trucks and auto parts. The Trump administration confirmed Wednesday morning that the lower rate would apply to Japanese automotive goods, including finished vehicles.