Revised tariffs lower imported Japanese cars to 15% under Trump's new policy

Japanese vehicles will now be classified as European ones

, and Administrator

2025 September 14 . 5:42 AM

2 min read

Lowered tariff rates for Japanese vehicles, now standing at 15% under Trump's latest revisions.

Revised tariffs lower imported Japanese cars to 15% under Trump's new policy

The United States and Japan reached a significant trade agreement on July 22, 2022, setting a maximum 15% tariff for most Japanese goods exported to the U.S. This deal, which follows Japan's interpretation of the terms, aims to boost economic growth and investment on both sides.

According to President Trump, the agreement includes investments totalling $550 billion from Japanese companies, including major firms such as Toyota and SoftBank. Toyota has responded positively to the tariff reductions affecting its US sales, while SoftBank made significant investments, including a $2 billion contribution to Intel as part of this broader investment framework.

The new tariff rates will take effect seven days after the order is published in the U.S. official gazette. Notably, 90% of the profits generated from these investments are expected to remain in the U.S., according to President Trump.

The tariff changes will affect most Japanese products, but certain sectors such as aerospace, non-available-in-the-U.S. raw materials, and generic drugs remain exempt from the 15% tariff. The agreement does not affect the current tariff rates for Japanese goods already subject to a higher surtax.

The 15% tariff replaces the previous 25% tariff on Japanese cars. However, it's important to note that the order has not yet been published in the U.S. official gazette. The U.S. had initially stated that the 15% tariff would be added to existing tariffs on various Japanese products, but the Japanese government had maintained that the 15% would be the maximum rate.

The agreement signed between the U.S. and Japan includes certain counterparts from Japanese businesses, with these commitments totaling $550 billion. The order ensures that tariffs on most Japanese products do not exceed the new rate of 15%.

This trade agreement is expected to bring positive changes to the economic relationship between the U.S. and Japan, fostering increased investment and trade opportunities. The exact impact of the agreement will become clearer in the coming months as the tariff changes are implemented.