FX.co ★ U.S. to Implement 15% Tariff on Japanese Autos from Today

The United States is set to commence the application of a reduced 15% tariff on automobiles and auto parts imported from Japan starting Tuesday, as per a trade agreement between the two countries, announced the Trump administration. According to the U.S. Customs guidance, this new tariff rate will be applicable to "passenger vehicles and light trucks and automobile parts" from Japan that are entered for consumption post-12:01 a.m. EDT on September 16, 2025. Earlier this month, President Trump signed an order that decreases tariffs on the majority of Japanese products to 15%, reduced from the prior rate of 27.5%, following Japan's request for the U.S. to adhere to its commitment to lower levies on automobiles, which is a critical component of Japan’s economy. The automotive industry stands as Japan’s largest export sector to the United States, significantly contributing to jobs and wages. As part of the broader agreement, Japan has vowed to create a $550 billion U.S. investment fund, although concerns about its financing persist. Commerce Secretary Howard Lutnick cautioned that Japan might face elevated import taxes should it not support Trump's investment objectives.