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Vehicles are lined up at a vehicle storage yard at an industrial port in Yokohama, near Tokyo, Japan, July 23, 2025. — Reuters
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US President Donald Trump on Thursday signed an order for the implementation of low taxes on Japanese automobile imports and other products, which was announced in July.
Recording the agreement between the United States and a major Asian ally comes after months of negotiations, reducing the uncertainty for the Japanese auto sector on a large scale, and confirming a $ 550 billion Japanese investment deal in US projects.
Seven days after the order is published, Japanese autos are about to affect the lower prices. Some of the tariff relief withdraws until August 7.
Reuters earlier reported a source of the Japanese government, saying that Trump’s ruling means that the low rate of US tariffs on Japanese cars from 27.5 percent to 15 percent will be implemented by the end of this month.
Trump’s Levies have severely affected Japanese carmakers on global delivery. Last month, Toyota said it was expected to win about $ 10 billion from Trump’s prices on cars imported to the United States.
“Finally,” Japan’s top trade negotiator, Russian Akazawa, posted the X, in approved the month -long trade talks, which disappointed lawmakers in Tokyo. On Thursday, his 10th trip to the talks was marked by the United States.
Toyota praised Trump’s efforts to reach a trade deal with Japan. The company said in a statement, “Although nearly 80 % of vehicles sold in Toyota are made in North America, this framework provides a very important explanation.”
Trump’s ruling states that Japan “is working towards rapid implementation of a 75 percent increase in the purchase of rice in the United States … and the purchase of the United States agricultural goods, including corn, soybeans, fertilizers, biothanol (including sustainable aviation fuel) and other US dollars every year).
The White House said in July that as part of the deal, Japan will buy 100 Boeing BAN aircraft and increase the annual billion with US firms with US firms to $ 17 billion, which is $ 14 billion.
Japan said in July that the share of US rice imports could increase under its current framework, but the deal did not “sacrifice” Japanese agriculture.
On Thursday, Trump’s ruling also reiterated that the Japanese government has agreed to invest $ 550 billion in the United States, which will be selected by the US government.
In 2024, bilateral trade between the two countries reached about $ 230 billion, with Japan running a trade surplus about $ 70 billion.
In July, the United States agreed to reduce prices on Japanese automobile imports, but the time is not yet clear as Trump has not yet signed any executive order.
Japan has said that the trade agreement ensures that the fifth largest trade partner in the United States will always get the lowest tariff rate on all the negotiating contracts and pharmaceuticals through Washington. It does not include any tariffs on commercial airplanes and parts.
Sources said that the executive order is also expected to be included in the provisions that will not be decorated in Japanese imports in July, which is subject to high taxes, while less than 15 % will be adjusted by 15 %.
The Investment Package, which will come from Japan’s public -owned banks in the form of equity, loans and guarantees, was agreed as part of the July Trade Agreement.
The European Union acquired a 15 % baseline tariff in July as part of the framework trade deal with the United States, which stopped new prices on chips and pharmaceuticals.
Last week, the European Commission proposed to abolish imported US industrial goods in exchange for low US prices on European cars, an important part of a trade agreement between the European Union and the United States. Until Thursday, European car imports are still facing 27.5 % of revenue, an automaker official told Reuters.
