The U.S. will start implementing a lower 15% tariff on Japanese automobiles and auto parts from Tuesday, in line with a trade deal between the two nations, the Trump administration said. U.S. Customs guidance confirmed the rate will apply to “passenger vehicles and light trucks and automobile parts” from Japan entered for consumption after 12:01 a.m. EDT on September 16, 2025. Earlier this month, President Trump signed an order capping tariffs on most Japanese products at 15%, down from 27.5%, after Tokyo pressed Washington to honor its commitment to cut levies on autos, a key pillar of Japan’s economy. The auto industry is Japan’s largest export sector to the U.S. and a driver of jobs and wages. As part of the broader deal, Japan pledged to establish a USD 550 billion U.S. investment fund, though questions remain over its financing. Commerce Secretary Howard Lutnick warned Japan could face higher import taxes if it fails to back Trump’s investment plans.
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