US To Implement Lower 15% Tariffs On Japanese Cars And Auto Parts By Next Week

U.S. tariffs on Japanese goods, including cars and auto parts, will be lowered by Sept. 16, easing pressure on Japan’s export-heavy economy and its auto sector.

Japan’s top trade negotiator, Ryosei Akazawa, said in a post on X that a U.S. Federal Register notice published on Sept. 9 formalized President Donald Trump’s executive order implementing the U.S.-Japan trade deal struck in July.

The revised tariff schedule takes effect seven days from publication and applies retroactively from Aug. 7.

The order lowers tariffs on Japanese cars to 15% from 27.5% and ensures that goods already facing duties above that rate, such as beef, will not face additional levies. Products previously taxed below 15% will be adjusted to that level, while commercial airplanes and parts are exempt, according to a Reuters report.

“Finally,” Akazawa wrote on X, referencing months of negotiations that required 10 trips to Washington. He later told reporters Japan welcomed the order as “a steady implementation of the agreement reached on July 22.”

The executive order also confirmed Japan’s pledge to invest $550 billion in U.S. projects by 2029 and to boost purchases of U.S. agricultural goods and defense equipment. A joint statement said Tokyo would procure 100 Boeing aircraft and explore an Alaskan liquefied natural gas offtake agreement.

Trump’s levies on global shipments have weighed heavily on Japanese exporters. Toyota, which has warned of a $10 billion profit hit from tariffs, said the new framework “provides much-needed clarity.” 

Two-way trade between the U.S. and Japan reached nearly $230 billion in 2024, with Japan running a surplus of about $70 billion.

On Stocktwits, retail sentiment was 'bullish' on the SPDR S&P 500 ETF Trust (SPY) and 'extremely bearish' on the Invesco QQQ Trust (QQQ), both with 'normal' message volumes, while sentiment on the iShares MSCI Japan ETF (EWJ) was 'neutral' amid 'high' message volume.

So far this year, SPY is up 11.4% and QQQ has gained 13.5%, while EWJ has climbed 21.6%, outperforming both U.S. benchmarks.

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