The United States has lowered its tariffs on Japanese automobiles, implementing a trade pact negotiated with Tokyo. As of Tuesday, Japanese cars entering the US face a 15% tariff, down from 27.5%. This reduction provides some relief for Japanese manufacturers, who had been subject to hefty duties imposed by President Donald Trump earlier this year.
The new tariff rate applies retroactively to August 7 and is a result of the US-Japan trade deal unveiled in July. Tokyo has welcomed the implementation of the agreement, with chief government spokesman Yoshimasa Hayashi stating that the government appreciates US efforts towards the steady implementation of the deal.
Despite the reduction, Japanese automakers still face significant tariffs. Toyota, one of Japan’s largest car manufacturers, has expressed hope that the tariffs can be lowered further. The company stated that it hopes the environment surrounding the automotive industries of both Japan and the US will continue to improve, based on open and free trade, including further tariff reductions.
The US had previously imposed a 25% duty on imported automobiles and parts, in addition to a 2.5% tariff already in place. This move dealt a significant blow to Japanese automakers. In August, the US also imposed a separate 10% tax on imports from nearly all trading partners, including Japan. The new 15% tariff cap replaces this rate for many products.
As part of the US-Japan trade deal, Tokyo is expected to make investments worth $550 billion in the US, according to the White House. Japan’s tariffs envoy Ryosei Akazawa had previously stated that Washington was expected to revise the rule on tariffs, which has now been implemented.
The reduction in tariffs is a significant development in the trade relations between the US and Japan. The two countries have been working to improve their trade ties, and this move is seen as a positive step towards that goal. However, Japanese businesses are still pushing for further tariff reductions, and it remains to be seen how the trade relationship between the two countries will evolve in the coming months.
