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.

The Trump administration and Japan struck a trade deal that was better than feared. Shares of Toyota Motor ( TM -1.71%) rallied 11.8% this week, according to data from S&P Global Market Intelligence.

President Donald Trump announced a trade agreement with Japan on Tuesday, making it the largest U.S. trade partner to broker an accord as the White House threatens to impose tariffs on dozens of countries within days.

The U.S. and Japan struck a trade deal that will see tariffs on Japanese cars cut to 15%. Japanese [auto stocks surged](