Trump signs order to bring lower Japanese auto tariffs into effect

Trump signs order to bring lower Japanese auto tariffs into effect

US trade duty on cars reduces to 15% after Tokyo pledges US$550 billion investment and US$8 billion in yearly farm imports.

Japan auto tariffs
The US trade duty on Japanese cars will drop from 27.5% to 15%, taking effect by the end of this month. (EPA Images pic)
WASHINGTON:
US President Donald Trump signed an order on Thursday to implement lower tariffs on Japanese automobile imports and other productions that were announced in July.

The lower tariffs on autos are set to take effect seven days after publication of the order. Some of the tariff relief is retroactive to Aug 7.

Trump’s order also 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, Reuters reported earlier, citing a Japanese government source.

Trump’s order says Japan is “working toward an expedited implementation of a 75% increase of United States rice procurements… and purchases of United States agricultural goods, including corn, soybeans, fertiliser, bioethanol (including for sustainable aviation fuel)” and other US products totalling US$8 billion per year.

It also reiterates the Japanese government has agreed to invest US$550 billion in the United States in projects that will be selected by the US government.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.