WASHINGTON: Lower United States tariffs on Japanese automobiles will take effect on Tuesday following a Commerce Department confirmation on Monday.
The reduction implements a recent trade agreement negotiated between Washington and Tokyo, marking a significant shift in trade policy.
Japanese vehicles entering the United States will now face a 15% tariff instead of the previous 27.5% rate.
This change offers manufacturers some relief from President Donald Trump’s additional duties imposed earlier this year.
Since returning to office in January, Trump has targeted specific sectors with tariffs, including a 25% duty on imported automobiles and parts.
That policy had dealt a heavy blow to Japanese automakers by adding the 25% duty on top of an existing 2.5% tariff.
For goods outside specifically targeted sectors, Trump has also imposed a separate 10% duty on imports from nearly all trading partners.
In early August, he increased that 10% rate to various higher levels for goods from dozens of economies including the European Union and Japan.
That move left Japanese products facing a 15% US tariff added to existing duties for many goods.
Although both countries initially unveiled a trade pact in July, they appeared to differ in their understanding of its details regarding whether duties would stack on existing tariffs.
Japan’s tariffs envoy Ryosei Akazawa previously told reporters that Washington was expected to revise the rule.
The new US order taking effect Tuesday will implement a 15% tariff cap for many products, applying retroactively to August 7. Under the terms of the US-Japan tariff deal, Japan is also expected to make investments worth $550 billion in the United States according to the White House. – AFP