Trump Lowers US Tariffs on Japanese Cars to 15%

U.S. President Donald Trump signed an executive order reducing tariffs on Japanese automobile imports from 27.5% to 15%, a move aimed at easing pressure on Japan's auto sector and boosting the broader economy. The tariff reduction, formalizing a trade agreement reached in July, is expected to take effect within 10 to 14 days and includes provisions to prevent double taxation on imports. This agreement is part of a broader $550 billion Japanese investment plan in U.S. projects, along with increased purchases of U.S. agricultural goods and Boeing planes. The tariff relief has been welcomed by Japanese automakers, with shares of companies like Toyota, Mazda, and Nissan rising significantly after the announcement. Japan’s top trade negotiator, Ryosei Akazawa, played a key role in finalizing the deal, reflecting months of negotiations and cooperation between the two countries. The move also supports expectations of a hawkish Bank of Japan monetary policy amid improving domestic wage data and a softer U.S. dollar.