Tokyo — Japan’s prime minister welcomed U.S. President Donald Trump’s order to implement lower tariffs on automobiles and other Japanese imports, saying it reduced uncertainty for key industries and reflected a priority the government had pushed to resolve.
The tariff cut reduces duties to 15% from the previous 25%, a change the two countries agreed to on July 22, officials said. “Tariff negotiations between Japan and the United States was the top priority for the government and we have put all our effort into achieving an agreement in a best possible way as soon as possible,” Prime Minister Shigeru Ishiba said Friday. “The way it was achieved … is just excellent.”
Japan’s top tariff negotiator Ryosei Akazawa and U.S. Commerce Secretary Howard Lutnick signed a joint statement in Washington confirming a planned $550 billion Japanese investment in U.S. projects, Japanese and U.S. officials said. Akazawa said Trump’s order brings down tariffs and reduces uncertainty for exporters, automakers and related suppliers that had faced higher levies under the previous rate.
The announcement comes as Ishiba confronts pressure from right-wing rivals within his own party following his party’s loss in July’s national election. Domestic political dynamics have placed additional scrutiny on any deal that affects Japan’s industrial base, particularly its large automotive and parts sectors.
U.S. and Japanese officials had been negotiating the tariff changes for months, with both sides describing the July agreement as the framework for implementation. The order signed by President Trump directs U.S. agencies to carry out the lower tariff schedule on specified Japanese goods, bringing a multilateral trade point between the allies into a bilateral implementation phase.
Economists and industry groups have said that predictability in tariff policy matters for supply chains and investment planning, especially for automakers that operate integrated production networks across the Pacific. The joint statement on investment followed the tariff announcement and outlined areas for Japanese capital to flow into U.S. projects, though it did not immediately provide a detailed breakdown of the specific projects or timelines.
Japanese and U.S. officials said the next steps will focus on implementing the tariff reductions and coordinating regulatory and customs procedures to limit market disruption. Both governments indicated they would monitor the effects on trade flows as the lower tariff rate takes effect.