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   Business
Lower US tariffs on Japan autos to take effect Tuesday
  16, September, 2025, 11:27:50:AM

(BSS/AFP) - Lower US tariffs on Japanese autos are set to take effect this week, a Commerce Department notice confirmed Monday, as Washington implements a recent trade pact it had negotiated with Tokyo.

Starting Tuesday, Japanese autos entering the United States will face a 15-percent tariff instead of 27.5 percent, 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-percent duty.

This dealt a blow to Japanese automakers, for whom the 25-percent duty piled atop an existing 2.5-percent tariff -- bringing the overall level to 27.5 percent.

For goods falling outside specifically targeted sectors, Trump has also imposed a separate 10-percent duty on imports from nearly all trading partners since returning to the presidency.

In early August, he hiked the 10-percent 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-percent 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 Tuesday will see a 15-percent tariff cap instead 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.



  
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