By Stephen Wilmot

Japanese and South Korean cars shipped to the U.S. are subject to a sector-specific auto tariff, not the broad "reciprocal" levies voided by a trade court. Yet Toyota had its best day in over a month in Tokyo, and other Asian car stocks such as Hyundai also performed strongly. Why?

-- Sector bellwether Toyota reported strong sales for April, with global deliveries rising to a new monthly record. In the U.S., its largest market, the company attributed the gains both to strong demand and a "rush" to buy cars before tariffs took effect.

-- Vehicle purchases are highly sensitive to macroeconomic conditions, and investors see the rollback of duties as good for the economy, particularly in America. This lifted the European shares of Chrysler owner Stellantis, which makes much of its profit in the U.S.

-- Shares of German carmakers such as Volkswagen and Mercedes-Benz, which are less dependent on the U.S., pared some earlier gains.

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May 29, 2025 07:34 ET (11:34 GMT)

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