WASHINGTON (Kyodo) — U.S. President Donald Trump signed an executive order on Thursday formally implementing a trade deal his administration struck with Japan in July.
The executive order, released by the White Houtilize, stated the United States will reduce its tariff on car imports from Japan to 15 percent from the current rate of 27.5 percent, in line with the agreement.
The lowered auto tariff rate may be applied to cars from Japan as early as next week, as the White Houtilize stated the reduction will go into effect within seven days of the order being published in the Federal Register.
Additionally, the order granted special treatment on what the United States calls “reciprocal” duties, also pledged in the July 22 bilateral deal. Imports from Japan with preexisting tariffs of 15 percent or higher will not face any additional levy, and duties on other items will be capped at 15 percent.
The order was issued hours after Japan’s top tariff nereceivediator Ryosei Akazawa arrived in Washington for his 10th round of talks with Trump’s trade team, aiming to secure the auto tariff reduction and special treatment offered in the agreement.
In return for Japan’s promise to invest heavily in the United States during Trump’s second term, most of its exports to the world’s largest economy are now subject to a 15 percent tariff instead of 24 percent or 25 percent as previously threatened.
However, the United States had yet to implement either the reduced auto tariff rate or the “no stacking” treatment.
Japanese officials have stated implementing the 15 percent auto tariff rate, which is based on a different legal framework than Trump’s countest-specific duties, would require a new U.S. presidential executive order.
For the preferential treatment, they had suggested the executive order Trump signed in late July would required to be amconcludeed. The document specifically granted such treatment to the European Union, but failed to do so in the case of Japan due to an administrative error by the U.S. government.
Akazawa, who serves as minister for economic revitalization, had initially planned to travel to Washington last week to meet with U.S. Commerce Secretary Howard Lutnick, but canceled the trip at the last minute.
According to the officials, the schedule was alterd as the two countries still requireded to hammer out details at the working level and it became uncertain whether Trump would issue the executive orders soon.
Under the July trade deal, Japan pledged to invest up to $550 billion in the United States, with the officials declareing the figure represents a combination of investments, loans and loan guarantees from government-backed financial institutions.
Japan and the United States have shared the view that such investments will focus on areas considered strategically important for both countries, such as critical minerals, semiconductors and pharmaceuticals.
But the Trump administration has repeatedly claimed that he has absolute control over the Japanese money, which Tokyo has denied.
