Today's Edition
WASHINGTON/TOKYO (Reuters)
US President Donald Trump signed an order on Thursday to implement lower tariffs on Japanese automobile imports and other products that were announced in July, providing some relief to Japan's export-heavy economy.
Formalising the deal between the US and a key Asian ally comes after months of negotiations, reduces uncertainty plaguing the massive Japanese auto sector since the July announcement and confirms an agreement for $550 billion of Japanese investment in US projects.
The lower 15% tariffs on Japanese autos, down from the current 27.5%, are set to take effect seven days after official publication of the order.
The executive order also ensured that the 15% levy on Japanese imports agreed in July would not be stacked on top of those already subject to higher tariffs, such as beef, while items previously subject to tariffs below 15% would be adjusted to 15%. This relief is retroactive to August 7.
In addition, it promised no tariffs on commercial aeroplanes and parts.
"Finally," Ryosei Akazawa, Japan's top trade negotiator, posted to X, in a nod to the months-long trade talks that had frustrated lawmakers in Tokyo. Thursday marked his 10th trip to the US for the negotiations.
Speaking to reporters in Washington, Akazawa said Japan welcomed the executive order as "a steady implementation of the agreement reached on July 22."
US Commerce Secretary Howard Lutnick posted a video clip on X showing a conversation with Akazawa, where he said the order "puts into effect the amazing, historic agreement."
Trump's levies on global shipments have dragged down Japan's exports and hit Japanese carmakers hard.
Toyota, which has flagged a nearly $10 billion profit hit from the tariffs, praised Trump's efforts to reach a trade deal with Japan. "While nearly 80% of the vehicles Toyota sells in the US are made in North America, this framework provides much-needed clarity," the company said in a statement.
The United States, in July, agreed to lower tariffs on imports of Japanese automobiles, but the timing remained unclear as Trump had yet to sign an executive order.
