Japanese automakers are facing mounting pressure from multiple fronts—U.S. tariffs, intensifying competition from Chinese rivals, and a sluggish domestic market—raising expectations that the industry will consolidate around giants like Toyota and Honda.

Over the past few decades, Japan-based automaker Toyota has spent billions of dollars to expand its manufacturing and assembly plants in the United States. Those plants now employ over 64,000 people across North America and have churned out millions of vehicles.

It is the most significant of a clutch of agreements Trump has bagged since unveiling sweeping global levies in April, though like other deals, exact details remained unclear.

President Trump's trade strategy, marked by elevated tariffs, is yielding agreements with nations like the EU, Japan, and Vietnam. The EU accepted 15% US tariffs and committed to significant purchases and investments.

Steep tariffs on U.S. imports of steel and aluminum remain, however, and many other countries, including South Korea and Thailand, have yet to clinch agreements. Overall, economists say the tariffs inevitably will dent growth in Asia and the world.

U.S. President Donald Trump said on Monday that he had instructed his trade team to resume negotiations on trade with Thailand and Cambodia after the two nations agreed to a ceasefire. "Just spoke to the Acting Prime Minister of Thailand and Prime Minister of Cambodia,

President Donald Trump announced new trade agreements with Japan, the Philippines and Indonesia this week as the Trump-imposed August 1 tariff deadline approaches. The U.S.–Japan agreement reduces planned tariffs on Japanese exports from 25% to 15% in exchange for a $550 billion Japanese investment in U.

President Donald Trump’s trade deal with the European Union could prompt other partners to move more quickly in pursuit of assurances they’ll avoid new tariffs next week.