U.S. President Donald Trump has signed an executive order to lower tariffs on Japanese autos and other goods. Implementing a trade agreement reached with Tokyo, the new order reduces tariffs on Japanese vehicles from 27.5 per cent to 15 per cent, with similar caps applied to many other products.
The changes follow a visit by Japan’s tariff envoy, Ryosei Akazawa. Although the trade deal was announced in late July, details had remained unclear, especially after the U.S. raised tariffs in early August on several countries, including Japan. Akazawa travelled to the U.S. to push the finalisation of the agreement after weeks of delay.
The new 15 per cent cap on Japan will apply retroactively to shipments from August 7, the date that the higher duties on dozens of economies took effect. Meanwhile, separate U.S. tariffs – such as a 25 per cent duty on autos and parts – remain in place.
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