WASHINGTON: US President Donald Trump signed an order on Thursday (Sep 4) to implement lower tariffs on Japanese automobile imports and other products that were announced in July.
The lower tariffs on autos are set to take effect seven days after publication of the order. Some of the tariff relief is retroactive to Aug 7.
Trump’s order also means a reduced US tariff rate on Japanese cars, from the current 27.5 per cent to 15 per cent, is set to take effect by the end of this month, Reuters reported earlier, citing a Japanese government source.
Trump’s levies on global shipments, which kicked in August, have hit Japanese carmakers hard.
Last month, Toyota said it expected a hit of nearly US$10 billion from Trump’s tariffs on cars imported into the United States.
Trump’s order says Japan is “working toward an expedited implementation of a 75 per cent increase of United States rice procurements … and purchases of United States agricultural goods, including corn, soybeans, fertiliser, bioethanol (including for sustainable aviation fuel)” and other US products totalling US$8 billion per year.
It also reiterates that the Japanese government has agreed to invest US$550 billion in the United States in projects that will be selected by the US government.
The Japanese government declined to comment.
The United States in July agreed to lower tariffs on imports of Japanese automobiles, but the timing remains unclear as Trump had yet to sign an executive order.
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