Japan's Honda stock jumped more than 11%, while Toyota surged over 15%. Shares of South Korean carmaker Hyundai and Kia also rose on the announcement. Shares of Japanese automakers surged after Japanese Prime Minister Shigeru Ishiba said that U.S. auto tariffs were lowered to 15% from the current 25%, Reuters reported.

The deal eases exports of cars and car parts, positioning Japan one step ahead of all the world's automakers, which still have to deal with 25% tariffs

The U.S. and Japan struck a trade deal that will see tariffs on Japanese cars cut to 15%. Japanese [auto stocks surged](

Japan trade deal sparks hope for U.S. investors, and frustration for automakers who face higher tariffs on Mexico and Canada imports.