TOKYO (Kyodo) — Japan’s top tariff negotiator Ryosei Akazawa said Tuesday he plans to ask Washington to swiftly reduce auto tariffs in line with a recently struck bilateral trade deal during his trip to the United States this week.
Although U.S. President Donald Trump’s executive order said a so-called reciprocal tariff on Japanese goods will be set at 15 percent, effective Thursday, it remains unclear when the lowered tariffs on autos and auto parts will be implemented.
“One purpose of my visit is to prompt the issuance of the president’s executive order regarding tariffs on autos and auto parts as early as possible,” Ryosei Akazawa, minister in charge of economic revitalization, told a Diet committee ahead of his trip to the United States that will last five days through Saturday.
Akazawa said he also wants to discuss the implementation of reciprocal tariffs after some Japanese opposition lawmakers expressed concern over possible misunderstandings with the Trump administration over the duties.
A U.S. customs guidance released Monday did not include a stipulation that imports from Japan already subject to tariffs of 15 percent or higher will not face an additional “reciprocal” duty, as stated by Tokyo following a recent bilateral trade deal.
This is in marked contrast to the U.S. Customs and Border Protection guidance for goods from the European Union — which struck a similar trade deal with the United States on July 27 — that states they will not be subject to additional tariffs.
“I have confirmed with the United States that there are no discrepancies (regarding the reciprocal tariff rates), but keeping in mind the new duties will be implemented on Thursday, I would like to provide a reminder for a thorough response beforehand,” Akazawa said.
According to the agreement struck late July with Japan, the United States will reduce its tariff on imported Japanese cars to 15 percent from the current 27.5 percent.
Japan also promised to boost investment in the United States by $550 billion through a combination of investments, loans and loan guarantees provided by financial institutions backed by the Japanese government.
Regarding the investment framework, Akazawa said the projects will proceed with close coordination with the United States during the roughly three-and-a-half years of Trump’s remaining tenure.
Akazawa had said it may take time for the 15 percent auto tariff to take effect, citing a deal on autos between Britain and the United States that took months to implement.
With the auto sector being a major driver of Japan’s export-reliant economy, higher U.S. duties deal a blow to carmakers such as Toyota Motor Corp. and Honda Motor Co., given the importance of the U.S. market to their bottom lines.
Trump slapped a 25 percent levy on U.S.-bound cars in April on top of a 2.5 percent duty already in place.
Japan negotiator to call for swift car tariff cut in US trip
