U.S. President Donald Trump lowers car import tariffs from Japan, reducing them from 25% to 15%

President of the United States signs decree lowering tariffs on Japanese vehicles from 25% to 15%, establishing a limit for most Japanese goods to not surpass this reduced rate.

, and Administrator

2025 September 13 . 8:35 PM

2 min read

Trump decreases automobile tariffs on Japanese imports from 25 percent to 15 percent.

U.S. President Donald Trump lowers car import tariffs from Japan, reducing them from 25% to 15%

The U.S. President has signed an executive order to reduce tariffs on most Japanese products, including cars, from 25% to 15%. This move comes as part of the agreement signed between the two countries in July.

The new tariff of 15% will apply to most Japanese products exported to the U.S., with some exceptions such as aeronautics, unavailable raw materials in the U.S., and generic medicines. The tariff change will take effect seven days after the order is published in the U.S. Federal Register, but the exact date of the tariff change has not yet been finalized.

Japan is receiving a similar tariff treatment as the European Union (EU) on its cars, with a tariff of 15% compared to the current 25% for most vehicles entering the U.S. Tariffs for Japanese products already above the new limit will remain unchanged.

The agreement also includes certain compensations from Japanese companies, with a guaranteed investment of "550 million dollars" in the U.S. Tokyo has promised to buy "100 Boeing aircraft" and has agreed to suspend long-standing restrictions preventing U.S. cars from entering the Japanese market.

In addition to this, Japan has committed to investing $68 million in India and has agreed to deepen both commercial and security relations. The agreement does not specify a timeline for Japan's purchase of "eight million dollars worth of U.S. products."

It's worth noting that the Japanese government's interpretation of the agreement regarding a maximum tariff of 15% has been validated. The details of the order were published on the White House website, confirming Japan's interpretation of the agreement signed with Washington.

A separate development sees the U.S. urging a swift Supreme Court decision after losing a tariff appeal, but this is not directly related to the facts presented in the provided paragraph.

The U.S.-Japan trade agreement is expected to bring significant changes to the bilateral trade relationship, benefiting both economies and fostering closer ties between the two nations.