Tokyo Stocks Roar After Trump Unexpectedly Halted Reciprocal Tariffs

Akira Ito
10 Apr, 2025
Tokyo

Japan's stock market indexes soared in Wednesday's trading after the U.S. president unexpectedly announced a pause of the forcefully promoted tariffs on all imports. 

The Nikkei 225 Stock Average catapulted nearly 10%, and the broader TOPIX index advanced more than 8% after the mercurial U.S. president reversed the course and halted the implementation of stiff reciprocal tariffs on all nations, except China, for the next 90 days. 

Trump still raised tariffs on China by an additional 50%, increasing the total to 125%.

The base tariff of 10% will remain in place on all other imports and 25% on shipments from Canada and Mexico that do not meet the rules laid out in the free trade agreement among the three neighbors. 

Donald Trump was forced to announce the halting of steep tariffs on key trading partners and other exporting nations after wild swings in the bond market raised worries that the upcoming bond auction is likely to fail amid weak interest from foreign central banks. 

The dramatic reversal in trade policy was brought about after the Treasury officials confirmed weak demand at the upcoming auction and the weakening of the U.S. dollar against the euro and other major currencies. 

The Japanese yen closed at 144.67 against the U.S. dollar in Tokyo trading.  

 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 9.6% to 34,609.0, and the broader TOPX advanced 8.1% to 2,539.40.

Mitsubishi UFJ Financial Group soared 11.7% to ¥1,711.00, Sumitomo Mitsui Financial Group advanced 6.4% to ¥3,221.00, and Mizuho Financial Group jumped 7.8% to ¥3,429.00. 

Toyota Motor Company increased 7.5% to ¥2,543.00, Honda Motor Company advanced 8.4% to ¥1,348.50, and Nissan Motor Company jumped 9% to ¥339.70.

Seven & I Holdings Co. Ltd. increased 9.8% to ¥2,030.00, Takashimaya Co. Ltd. advanced 4.6% to ¥1,125.50, Isetan Mitsukoshi increased 3.7% to ¥1,125.50, and Fast Retailing Co. Ltd. gained 9.1% to ¥46,480.00.