US to slash tariffs on Japanese cars to 15 per cent under bilateral trade deal

The Donald Trump administration will implement a reduced tariff of 15 per cent on Japanese automobiles this week, following a bilateral trade agreement between the two countries. The International Trade Administration of the Commerce Department announced the move in a notice posted on the Federal Register, with the new rate taking effect from Tuesday.

The decision comes after President Donald Trump signed an executive order earlier this month to formally enact the agreement. Under the deal, tariffs on Japanese cars and parts will drop from the current 27.5 per cent — a combination of a 2.5 per cent base tariff and a 25 per cent sector-specific duty — to 15 per cent.

While a similar agreement has been struck with South Korea in July, the timeline for implementing the tariff cut on South Korean vehicles remains uncertain amid ongoing negotiations over the deal’s details. Upon arriving in the US, South Korea’s trade minister Yeo Han-koo emphasised Seoul’s efforts to expedite the reduction for Korean automobiles.

“As we are in the negotiation process, we will stay level-headed,” Yeo said, ahead of meetings with US trade representative Jamieson Greer and other officials to discuss the July trade deal.

The US is a key market for South Korean auto exports. Last year, 49.1 per cent of South Korea’s total car exports — valued at $34.7 billion — were destined for the US, including roughly 970,000 units from Hyundai Motor Group and 410,000 units from GM Korea.

With IANS inputs