Japanese Prime Minister Ishiba Shigeru says his government has reached a tariff agreement with the United States that serves the interests of both countries.
Japan’s Economic Revitalization Minister Akazawa Ryosei, the country’s chief tariff negotiator, met with US President Donald Trump at the White House on Tuesday. The two sides reached a deal on US tariff measures.
The US had imposed an additional 25 percent duty on automobiles in April. Under the new agreement, that levy will be halved to 12.5 percent. Including Washington’s existing 2.5 percent duty, autos will now be taxed at 15 percent.
The US had earlier said it would impose a 25 percent tariff on Japan starting August 1, a move Trump referred to as a “reciprocal tariff.” But both sides agreed to set the rate at 15 percent.
Ishiba said Wednesday that Japan had secured tariff cuts on autos and auto parts ahead of other nations — and without any quota limits. He said his government worked toward a deal that protects what needs to be protected while advancing the interests of both countries. He said such an agreement has now been realized.
The government plans to move quickly to implement the deal, including finalizing the necessary paperwork between the governments. Officials say Japan will continue supporting domestic industries, including by publishing tariff rates for each item and providing support through dedicated consultation services.
Noda Yoshihiko, president of the opposition Constitutional Democratic Party of Japan, pointed out the new auto tariff will be six times the previous rate. He said it is important to closely examine its impact.
Arrangements are being made for Ishiba to meet with the leaders of other parties on Friday to explain the details of the agreement with the US.
AloJapan.com