US President Donald Trump has signed an executive order to implement the deal earlier this month, setting a maximum 15% tariff on most of Japan’s products
[WASHINGTON] The US will begin formally implementing a lower 15 per cent tariff rate on imports of automobiles and auto parts from Japan as at Tuesday (Sep 16) morning, according to the Trump administration, in line with a trade deal between the two economies.
US Customs and Border Protection guidance on implementing the deal said that the lower rate will take effect for “passenger vehicles and light trucks (automobiles) and automobile parts that are products of Japan and entered for consumption or withdrawn from warehouse for consumption on or after 12.01 am eastern daylight time on Sep 16, 2025”.
US President Donald Trump signed an executive order to implement the deal earlier this month, setting a maximum 15 per cent tariff on most of Japan’s products, including automobiles. Tokyo had pushed the administration to follow through on an agreement to reduce auto levies from 27.5 per cent, a move seen as critical to a sector that is a major driver for the Japanese economy.
The auto sector accounts for the biggest component of exports to the US and serves as a pillar of employment and a trendsetter for wage growth.
The overall trade deal also included a promise from Japan to create a US$550 billion US investment fund, a key concession that helped secure the lower rate. But the investment fund has been dogged by questions over its funding, with both nations describing the pledge differently.
US Commerce Secretary Howard Lutnick has cautioned that Japan faces higher import taxes if it does not fund Trump’s investment decisions. BLOOMBERG
