Japan is the world's fourth largest economy, meaning it accounts for a large part of global trade and growth. Tokyo imports a great deal of energy and food from overseas and is dependent on exports including electronics, machinery and motor vehicles. The US is its biggest export market.

President Trump’s 15 percent tariff on cars from Japan has angered U.S. automakers, which make cars in Canada and Mexico subject to 25 percent tariffs.

Carmakers led the rally in Japan, where the Nikkei Stock Average surged 3.5% to its highest level in a year.