WASHINGTON: The United States will lower tariffs on Japanese automobiles starting Tuesday, the Commerce Department confirmed, as part of a recently concluded trade pact with Tokyo.
Japanese cars entering the U.S. will now face a 15 percent tariff, down from 27.5 percent, offering automakers some relief from President Donald Trump’s renewed trade duties this year.
Since returning to the presidency in January, Trump has imposed new tariffs across multiple sectors. Imported automobiles and parts were hit with a 25 percent duty, which combined with an existing 2.5 percent levy brought the effective rate on Japanese autos to 27.5 percent.
For products outside specifically targeted sectors, Trump also rolled out a 10 percent blanket tariff on nearly all imports from trading partners. That rate was raised in August to varying higher levels on goods from dozens of economies, including the EU and Japan, leaving many Japanese exports facing a combined 15 percent U.S. tariff on top of other duties.
Trade Deal Clarifies Tariff Application
The U.S. and Japan announced a tariff agreement in July, but there was initial confusion about whether new duties would stack on top of existing tariffs. Japan’s tariffs envoy Ryosei Akazawa told reporters that Washington was expected to revise its stance.
The new order, which takes effect Tuesday, will cap tariffs at 15 percent for many Japanese products and will apply retroactively to August 7.
Japanese Investment Commitments
Under the terms of the U.S.-Japan deal, Tokyo is also expected to make US$550 billion in investments in the U.S., according to the White House.
