U.S. to Apply 15% Tariff on Japanese Cars Starting the 16th

U.S. President Trump announces auto tariffs. Reuters Yonhap News. 

The U.S. administration of Donald Trump announced on the 15th that it plans to apply a 15% tariff on Japanese cars imported into the United States, effective the 16th (local time), in accordance with the trade agreement with Japan.

According to the Federal Register on this day, the measure by the Trump administration to reduce the tariff imposed on Japanese cars to 15% will take effect starting the 16th.

In April, President Trump raised tariffs on automobiles and automotive parts to 25%, based on Section 232 of the Trade Expansion Act, which allows tariffs to be imposed if imported products from foreign countries pose a threat to national security.

Consequently, Japan was subject to a tariff of 27.5%, with the existing 2.5% tariff combined with the new 25% tariff.

With the reduction in tariffs on Japanese cars exported to the U.S., Japan is expected to gain a competitive edge in price in the U.S. auto market.

However, for Korean automakers like Hyundai Motor Group, which are competing in the U.S. market with Japan and Europe, a blow is anticipated, as South Korea has only reached a broad trade agreement framework with the U.S., with the final agreement not yet concluded due to disagreements on specific details.

In the case of automobiles, South Korea's top export product to the U.S., a 25% tariff is being applied under Section 232 of the Trade Expansion Act.

Yonhap News