Japan, U.S. Near Deal to Reduce Auto Tariffs

Japan and the United States are in the final stages of talks to implement lower tariffs on Japanese automobile imports within 10–14 days after the issuance of a US presidential executive order, a Japanese government source told Reuters, Tamiyuki Kihara reported.

The US agreed in July to lower tariffs on imports of Japanese automobiles, but the timing remains unclear as Trump has yet to sign an executive order. (Photo: Toyota of Hollywood) 

That means a reduced US tariff rate on Japanese cars — from the current 27.5% to 15% — is set to take effect by the end of this month, said the source, who declined to be identified as the matter is confidential.

The exact date to be specified in the executive order is still under discussion, the source added, noting that the final decision rests with US President Donald Trump.

The US agreed in July to lower tariffs on imports of Japanese automobiles, but the timing remains unclear as Trump has yet to sign an executive order.

Japan's top trade negotiator, Ryosei Akazawa, flew to Washington on Thursday to press the US to issue the executive order.

The order is also expected to include provisions ensuring that the 15% levy agreed in July would not be stacked on Japanese imports already subject to higher tariffs, while items previously subject to less than 15% tariffs would be adjusted to 15%, the source said.

Japan and the US are working to include in the order some context on the tariff deal, including Japan's plans to expand US rice imports and purchase US-made aircraft.

A statement outlining the July deal and a memo clarifying rules for Japan's planned $550 billion US investment package are also expected alongside the executive order.