US likely to lower auto tariffs on Japan by mid-September
The United States is likely to lower its tariffs on vehicles and auto parts imported from Japan in mid-September, some people familiar with the matter say.
Washington agreed to lower its tariffs on Japanese vehicles and auto parts from 27.5 % to 15 % as part of a trade deal with Tokyo struck in late July.
While it is uncertain when the tariffs will be lowered, Japanese economic revitalisation minister Ryosei Akazawa said last week that it took 54 days for the United States to reduce tariffs on goods imported from Britain after a bilateral agreement.
The Japanese government is continuing to urge the United States to reduce the auto tariffs at an early date, citing their significant impact on the domestic automobile industry.
On Thursday, Toyota Motor Corp. said that the levies are expected to lower its operating profit by 1.4 trillion yen in the year ending in March 2026.
"We want (the lower tariff rate) to go into force as early as possible," said Akazawa, Japan's chief negotiator in tariff talks with the United States.
The United States is expected to revise an executive order for the auto tariffs as well as the 15 % reciprocal tariffs on Japanese imports that went into effect on Thursday.
The Japanese government has said that reciprocal tariffs would not apply to Japanese items that are already subject to tariffs of 15 % or higher under the trade deal. Under an executive order currently in place, however, some Japanese products face higher US tariffs.
[Copyright The Jiji Press, Ltd.]
