US to cut tariffs on Japanese autos starting Tuesday
The United States will lower tariffs on Japanese automobiles beginning Tuesday, easing some of the pressure on Tokyo’s auto industry following a recent trade deal between the two countries, the Commerce Department confirmed Monday.
Under the revised terms, Japanese autos entering the US will face a 15% tariff, down from 27.5%. The higher rate was the result of President Donald Trump’s new 25% duty on imported vehicles and parts, applied on top of an existing 2.5% tariff.
Since returning to office in January, Trump has launched a series of tariff hikes, including a blanket 10% duty on most imports, later raised for dozens of economies. Japanese products were hit particularly hard, with many items facing an additional 15% levy.
The US and Japan announced a trade pact in July, but the two sides initially disagreed on how the duties would apply, with Tokyo warning that the rules effectively “stacked” tariffs. Japanese negotiator Ryosei Akazawa indicated Washington was expected to adjust its stance.
The Commerce Department order now caps tariffs at 15% for many Japanese imports, with the rule applied retroactively to August 7.
As part of the broader agreement, Japan has pledged to invest $550 billion in the US, according to the White House.
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