BMW, Volkswagen, Stellantis Rally As Trump's Japan Trade Pact Fuels Hopes For EU Deal — But Analysts Warn It's 'Impossible To Predict'

As President Donald Trump announced 15% tariffs on Japanese imports after reaching an agreement with Japanese officials, shares of some of Europe's top automakers rallied, hoping for similar breakthroughs.

What Happened: Shares of German automakers Bayerische Motoren Werke AG (OTC:BAMXF), Volkswagen AG (OTC:VWAGY) and Mercedes-Benz Group AG (OTC:MBGYY) were all up 5% following the news.

Meanwhile, Stellantis NV's (NYSE:STLA) shares soared 7.1% in the European market as well. The Stoxx Europe autos index also rose 4.2% following the news, the report suggests.

However, Rella Suskin, Equity Analyst at Morningstar, according to a CNBC report, said it’s "impossible to predict" whether a similar breakthrough could be reached with other regions like the EU, but it could prove to be difficult as the "figures do not come close to Japan's commitment," Suskin said.

"EU negotiators have also proposed removing their 10% duties on US car exports if the U.S. reduces its duties on the sector to below 20%," Suskin said.

Why It Matters: The news comes as Trump said the deal with Japan, worth $550 billion, "will create Hundreds of Thousands of Jobs," with 90% of the profits going to the U.S.

Trump's trade deal with the country has sent the stocks of companies like Toyota Motor Corp. (NYSE:TM), Mazda Motor Corp. (OTC:MZDAY), etc. soaring, with the Nikkei and Topix indices up 3.10% and 2.71% respectively.

Elsewhere, General Motors Co. (NYSE:GM) announced its quarterly earnings report for the second quarter of 2025 and said it would be offsetting at least 30-40% of the additional costs due to Trump's tariffs.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next:

• Chrysler, Jeep Parent Company Stellantis Expects $2.7 Billion Net Loss In First Half Of 2025 As Trump Tariffs Cause Uncertainty

Photo Courtesy: Gsign76 On Shutterstock.com