Trump signs executive order lowering tariffs on Japanese autos to 15%

U.S. President Donald Trump signed an executive order on Thursday, under which tariffs on imported Japanese automobiles and parts will be lowered from the current 27-point-5 percent to 15 percent.

The new tariff rate will apply retroactively to Japanese auto products that arrived in the U.S. on or after 12:01 AM on August 7th, Washington time.

The order stipulates that for a Japanese product with an existing tariff of less than 15 percent, the total levy, including the reciprocal tariff, will be 15 percent.

For a product with an existing levy of at least 15 percent, the reciprocal tariff will be zero percent.

The U.S. has completed administrative procedures with Japan, and the order is scheduled to take effect as early as next week, increasing the likelihood of a gap in automobile tariffs with South Korea, which still has a tariff rate of 25 percent.