Toyota Motor Corp. said it hopes for improved ties between the US and Japan, going as far as to call for further tariff reductions a day after President Donald Trump announced a much-awaited trade pact with the island nation.

Toyota has expressed optimism following the announcement of a new trade agreement between the United States and Japan.

Toyota Motor (NYSE:TM) surged more than 12% in premarket trading on Wednesday as investors gauged the Japanese auto stock as a big winner of the new trade deal stuck between the U.S. and Japan. The U.