Trump's Lowered 15 Pct Tariff On Cars From Japan To Take Effect Tuesday

WASHINGTON, Sept 16 (Bernama-Kyodo) -- President Donald Trump's lowered tariff of 15 per cent on automobiles from Japan will take effect Tuesday, Kyodo News Agency reported, citing a United States (US) government notice on Monday.

The US tariff rate for foreign-origin cars rose to 27.5 per cent after Trump imposed in April an additional auto tariff on national security grounds, squeezing the margins of Japanese automakers and other manufacturers.

The reduced tariff is part of a trade deal the Trump administration struck on July 22 with Japan, which in return has committed to investing heavily in the United States and increasing imports of American agricultural products during the president's non-consecutive second term.

Trump signed an executive order on Sept 4 formally implementing the trade agreement, which also granted Japan special treatment on what he calls "reciprocal" tariffs.

On Aug 7, Trump's modified country-specific tariff rates for goods from dozens of US trading partners came into effect.

The United States currently imposes a 15 per cent tariff on most imports from Japan, down from the 24 per cent or 25 per cent that Trump had threatened prior to the agreement.

Additionally, his trade team has agreed that imports from Japan with pre-existing tariffs of 15 per cent or higher will not face any additional duty, and levies on other goods will be capped at 15 per cent.

However, the United States had yet to implement either the lowered auto tariff rate or the "no stacking" treatment for Japan.

The executive order, followed by necessary administrative procedures, finally enabled the United States to put the two commitments into practice.

With respect to any excess stacking tariffs collected from importers of Japanese goods under its new country-by-country tariff system, the Trump administration has said it will refund them dating back to Aug 7.

-- BERNAMA-KYODO