Trump cuts Japanese car import tax to 15%, Japan to buy US rice and planes
US President Donald Trump has signed a decree cutting import tax on Japanese cars from 27.5% to 15%. In exchange, Japan will invest US\$550 billion in the US, import more American rice and farm products worth US\$8 billion annually, and purchase 100 Boeing aircraft, boosting bilateral trade ties.
US President Donald Trump has signed a decree reducing the import tax on Japanese cars from 27.5% to 15%. In return, Japan will invest over US$550 billion in the US, alongside purchasing US rice, agricultural products, and 100 Boeing aircraft.
Reuters reported that Trump signed an order on Thursday (September 4) to reduce the import tax on Japanese cars from the previous 27.5% to 15%, as announced in July.
Before this trade agreement between the US and Japan could take effect, months of negotiations were required. The tax reduction will be implemented within seven days of the official order, with part of the relief retroactively applied from August 7.
Trump’s tariffs have significantly impacted Japanese automakers. Last month, Toyota projected it would incur nearly US$10 billion (around 320 billion baht) in losses due to the tariffs on vehicles imported to the US.
Ryosei Akazawa, Japan’s chief trade negotiator, posted on X to reflect on the prolonged trade talks, which have caused political dissatisfaction in Tokyo. Thursday marked his 10th trip to the US for negotiations.
Toyota praised Trump’s efforts in securing a trade deal with Japan, stating:”While nearly 80% of the vehicles Toyota sells in the US are made in North America, this framework provides much needed clarity.”
The Trump order also stipulates that Japan is advancing plans to increase US rice imports by 75% and purchase US agricultural products, including corn, soybeans, fertiliser, bioethanol, and other goods, with a total value of US$8 billion annually.
Under the agreement, Japan will purchase 100 Boeing aircraft and increase its defence spending with US companies from US$14 billion to US$17 billion per year.
Japan also indicated in July that its share of US rice imports could increase under the existing cooperation framework, though this agreement does not harm Japan’s agricultural sector.
Trump’s Thursday decree further affirmed that the Japanese government has agreed to invest US$550 billion in the US, in projects selected by the US government.
Trade between the two nations reached nearly US$230 billion in 2024, with Japan running a trade surplus of around US$70 billion with the US.
It is expected that this executive order will include provisions stating that the agreed 15% tax will not be added to products from Japan already subject to higher tariffs. Meanwhile, goods previously taxed at less than 15% will be adjusted to the 15% rate, according to sources.
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Source : Nation Thailand
