Japan, US Near Deal to Cut Auto Tariffs to 15%

The United States and Japan are nearing a deal to reduce U.S. tariffs on Japanese automobile imports from the current 27.5% to 15%, with the implementation expected within two weeks following a U.S. presidential executive order by President Donald Trump. Japanese trade negotiator Ryosei Akazawa recently traveled to Washington to urge swift action on the executive order, which will also clarify that the 15% tariff will replace higher tariffs rather than be added on top. The agreement is anticipated to take effect by the end of September and will include provisions adjusting items previously taxed below 15% up to that level. Additionally, the deal will cover expanded U.S. rice imports and purchases of U.S.-made aircraft by Japan, along with a memorandum regarding Japan's planned $550 billion investment in the U.S. economy. The announcement has been welcomed by investors, with shares of Japanese automakers like Toyota, Nissan, and Mazda trading higher following the news. Despite some concerns from American automakers, U.S. Commerce Secretary Howard Lutnick has expressed support for the agreement, which aims to improve bilateral trade relations.