US implements lower tariffs on Japanese cars

On Thursday, US President Donald Trump signed an executive order officially implementing the tariff reductions on Japanese imports, particularly cars, agreed in July.

The tariff on vehicles will thus fall from 27.5% to 15%, which will primarily benefit Japan's export-oriented automotive industry. The measures will take effect within seven days of the order's publication and will apply retroactively from August 7.

In return, Japan has committed to a huge investment of $550 billion in US projects selected by the government. These are intended to strengthen infrastructure, industry, chips, and energy, among other things.

Trade between the US and Japan amounted to nearly $230 billion in 2024, with a Japanese trade surplus of around $70 billion.

(reuters, est)