| Online Desk : U.S. President Donald Trump signed an executive order on Thursday lowering tariffs on Japanese automobiles and other goods, moving forward with the implementation of a recently negotiated trade agreement between Washington and Tokyo.
Under the new order, Japanese vehicles will now face a reduced 15% tariff — down from the previous 27.5%. The cap will also apply to many other Japanese products, with the changes taking effect retroactively from August 7, the date when the earlier, higher tariffs were applied to dozens of countries.
The move is seen as a win for Japan, which had dispatched its tariff envoy Ryosei Akazawa to Washington to urge Trump to finalize the changes. Tokyo had pushed for clarity and implementation after the initial deal was announced in July but delayed in execution.
Top Japanese government spokesman Yoshimasa Hayashi welcomed the development, calling it “the steadfast implementation” of the agreement and a step forward in bilateral economic relations.
Tariff rollback comes after months of tension
The new tariff levels come as part of a broader reworking of trade terms between the two nations. Trump’s earlier decision to raise tariffs on Japan — as part of sweeping trade measures targeting multiple economies — had caused concern, particularly among Japanese automakers.
In addition to the now-reduced 15% tariff, Japan’s auto sector had previously faced a separate 25% duty on autos and parts, along with an existing 2.5% levy. Combined, these brought the total burden to 27.5%, delivering a blow to one of Japan’s most vital industries. The auto sector accounts for about 8% of Japanese employment.
While the new deal aligns Japan’s tariff treatment with that of the European Union, which also enjoys a 15% cap on many goods, Japanese officials said the reduced rate still poses challenges.
“The 15 percent tariff would still cause damage to our nation’s industries,” Akazawa said Friday in Washington. He added that the Japanese government would implement “swift and necessary measures, like financing assistance,” to support affected businesses.
US to control $550 billion in investments from Japan
Beyond the tariff rollback, the executive order referenced an expected $550 billion in Japanese investments into the United States, though details remain sparse.
According to the document, the investments will be “selected by the United States Government.” Trump has claimed that the U.S. will retain 90% of the profits from these investments — which Japan has indicated will primarily consist of loans and loan guarantees.
Akazawa is expected to continue negotiations in Washington over the structure and oversight of these investments. Tokyo had previously cancelled a diplomatic visit after reports surfaced that Washington might include reductions in Japanese agricultural tariffs in the same executive order — a move that Tokyo opposed.
Trump has repeatedly pressed Japan to import more American agricultural products, including rice, a longstanding point of contention in trade talks.
A ‘golden age’ ahead?
Despite tensions, Japanese officials have framed the deal as an opportunity to strengthen ties. Former defense minister Shigeru Ishiba said Tokyo had sent a letter inviting Trump to visit Japan and expressing a desire to “build a golden age for Japan and the United States together.”
The tariff changes are expected to be formally published in the Federal Register, with modifications to take effect within seven days of publication.
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