Japan will continue to ask the United States to swiftly implement a bilateral trade agreement, including the lowering of tariffs on automobiles and auto parts, the top government spokesman said Friday.
While the details of an executive order signed by President Donald Trump to implement a “reciprocal” tariff on Japan must be examined, it will reduce uncertainty over U.S. trade policy and “downside risks” to the Japanese economy, Chief Cabinet Secretary Yoshimasa Hayashi said.
The reciprocal tariff of 15 percent targeting Japan will take effect on Aug. 7, instead of Friday as initially expected. Based on the bilateral deal reached last month, the United States will reduce its tariff on imported Japanese cars to 15 percent from the current 27.5 percent.
“We will continue to call for the United States to take measures to implement the bilateral agreement swiftly, including reductions in tariffs on cars and auto parts,” Hayashi said at a press conference.
“We will closely monitor the impact of the tariff measures on Japanese exports,” he said, noting that Japan and other countries have seen their tariff rates reduced from the levels initially unveiled by the Trump administration.
Japan initially sought the removal of the higher tariffs, but the United States apparently did not budge. Japan’s negotiation team, led by economic revitalization minister Ryosei Akazawa, settled for lower rates.
Akazawa said Thursday that it may take time for the 15 percent auto tariff to be implemented, citing a tariff deal on autos between Britain and the United States as a precedent.
With the auto sector a major driver of Japan’s export-reliant economy, higher U.S. duties on Japanese cars 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.
Editor’s Note: This story has been updated. Originally posted with the headline “Japan to seek early implementation of trade deal with U.S.”
