AsianFin -- The Trump administration on Tuesday started to implement the lower tariffs on Japanese auto exports nearly two months after announcement of a U.S.-Japan trade deal aimed at cutting levies.

Credit：Freepik

A 15% tariff on imports of automobiles and parts from Japan will come into effect on Tuesday, according to a notice from the U.S. government will Commerce Department released on Monday. The notification marks implementation of a trade deal between U.S. and Japan. 

The lower rate, down from the total auto duty rate of 27.5%, will take effect for “passenger vehicles and light trucks (automobiles) and automobile parts that are products of Japan and entered for consumption or withdrawn from warehouse for consumption on or after 12:01 am eastern daylight time on September 16, 2025,” said U.S. Customs and Border Protection guidance on implementing the deal.

U.S. President Donald Trump earlier this month signed an executive order to implement a bilateral agreement and lower the sweeping tariffs on Japan to 15%, including the auto levies. Trump in the order said he determined to implement the U.S.-Japan agreement and asked all executive departments and agencies to implement the order. That marks a move to impose  a maximum 15% tariffs on most Japanese exports, and avoid the tariff overlapping when the Trump administration is levying sectoral tariffs.

“Under the Agreement, the United States will apply a baseline 15 percent tariff on nearly all Japanese imports entering the United States, alongside separate sector-specific treatment for automobiles and automobile parts; aerospace products; generic pharmaceuticals; and natural resources that are not naturally available or produced in the United States, “ said to the executive order released by the White House on September 4.

The agreement effectively cut all Trump’s new tariffs on Japan this year to a rate of 15%. Prior to the new U.S. reciprocal tariffs effective on August 7, Japan faced the 10% worldwide baseline tariffs as well as a 25% tariff on automobiles and auto parts, and a 50% tariff on steel and aluminum. The order on September 4 made it clear that all tariffs on automobile and auto parts imported from Japan shall be 15%. 

In exchange, Japan under the agreement will offer a wide range of American goods “breakthrough openings in market access”, according to the order. It noted the Japanese government is working toward an expedited implementation of a 75% increase of United States rice procurements within the Minimum Access rice scheme and purchases of United States agricultural goods, including corn, soybeans, fertilizer, bioethanol, as well as other United States products, in amounts totaling $8 billion per year.  

 Japan has also agreed to invest $550 billion in the U.S., and the investment will be selected by Washington, the order said.