Lower US tariffs on Japan autos to take effect on Sep 16
A worker is seen among newly manufactured cars awaiting export at a port in Yokohama, south of Tokyo, Japan, on Mar 27, 2025. (File photo: Reuters/Issei Kato)
WASHINGTON: Lower United States tariffs on Japanese autos are set to take effect this week, a Commerce Department notice confirmed on Monday (Sep 15), as Washington implements a recent trade pact it had negotiated with Tokyo.
Starting Tuesday, Japanese autos entering the US will face a 15 per cent tariff instead of 27.5 per cent, providing manufacturers some reprieve from President Donald Trump's fresh duties this year.
Since returning to the presidency in January, Trump has targeted specific sectors with tariffs, and imported automobiles and parts face a 25 per cent duty.
This dealt a blow to Japanese automakers, for whom the 25 per cent duty piled atop an existing 2.5 per cent tariff - bringing the overall level to 27.5 per cent.
For goods falling outside specifically targeted sectors, Trump has also imposed a separate 10 per cent duty on imports from nearly all trading partners since returning to the presidency.
In early August, he hiked the 10 per cent rate to various higher levels for goods from dozens of economies, including the European Union and Japan.
The move left Japanese products facing a 15 per cent US tariff tacked onto existing duties for many goods.
While the two countries had initially unveiled a trade pact in July, they appeared to diverge in their understanding of its details, such as whether the duties would generally stack on existing tariffs for certain products.
Japan's tariffs envoy Ryosei Akazawa previously told reporters that Washington was expected to revise the rule.
The new US order taking effect on Tuesday will see a 15 per cent tariff cap instead for many products, applying retroactively to Aug 7.
Under the terms of the US-Japan tariff deal, Japan is also expected to make investments worth US$550 billion in the US, according to the White House.
