On September 5, 2025, the US president signed an executive order to cut tariffs on Japanese car imports from 27.5% to 15%, easing trade tensions.
- US reduces Japanese car tariffs to 15%
- Japan commits $550bn investment in US projects
- Deal aims to reduce US-Japan trade deficit
- Japan to increase US rice purchases by 75%
- US tariffs in April impacted Japanese automakers
- Japanese car shares rose after executive order
The order formalizes a July agreement, applying a 15% levy to nearly all Japanese exports, including vehicles and pharmaceuticals. Japan has committed to investing $550 billion in US projects and opening its economy to American goods like cars and rice. The deal aims to lower America‘s trade deficit with Japan and create new opportunities for US businesses. Japan also agreed to buy $8 billion worth of US goods annually, including agricultural products and bioethanol, and will increase US-grown rice purchases by 75%. The agreement follows months of negotiations after Trump imposed sweeping tariffs globally in April. Japanese carmakers, heavily reliant on US exports, welcomed the move, with shares rising in Tokyo. The tariffs, which took effect in August, have already cost Toyota an estimated $10 billion this year, highlighting the impact of trade policies.
- Reduce US tariffs on Japanese cars from 27.5% to 15%.
- Japan commits to investing $550 billion in US projects.
- Japan agrees to buy $8 billion of US goods annually.
- US carmakers face reduced costs and increased market access.
This agreement signals improved US-Japan trade relations and could influence global markets. It also helps Japanese automakers recover from tariff impacts and expand US sales.
