Toyota shares jump 3.7%, on reports of lower US-Canada vehicle tariffs

Toyota shares (TYO: 7203) rose 3.7% in Tokyo trading.

The United States is reportedly considering reducing tariffs on vehicles imported from Canada. The proposed plan would lower the tariff rate from 25% to 15% as part of broader trade negotiations.

Toyota operates major manufacturing facilities in Ontario, Canada. A tariff reduction would lower the cost burden on vehicles assembled in Canada and shipped to the U.S. market.

This development could potentially boost Toyota's profitability. Washington and Ottawa are currently working to resolve several outstanding trade disputes.