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2025-07-31 19:29:03
[Uncertainty in the Japan-US Trade Agreement: Could Reducing Japan's Auto Tariffs Take Time?] ⑴ Japan's chief trade negotiator, Ryomasa Akazawa, stated that it may take some time for the US tariffs on Japanese autos to fall to 15%. ⑵ Previously, in the bilateral trade agreement reached in July of this year, the US agreed to reduce "reciprocal" tariffs on goods from both countries, including tariffs on autos, from the current 25% to 15%. ⑶ Akasawa told reporters after a government working group meeting that he expects the US to reduce the "reciprocal" tariffs to 15% starting this Friday (August 1st), in accordance with the bilateral agreement. ⑷ However, he also noted that the reduction in Japan's auto tariffs "may take some time." ⑸ To this end, Tokyo will intensify its calls for President Trump to sign an executive order as soon as possible. ⑹ Japan's auto industry accounts for over a quarter of its exports to the US and is a key engine of the Japanese economy. ⑺ The delay in tariff reductions could pose a challenge to Japan's fragile economic recovery. ⑻ The market will closely monitor subsequent developments to assess their impact on Japan-US trade relations and the Japanese auto industry.
