Trump signs order to bring down Japanese automobile import tariffs

Trump’s order will cut US tariffs on Japanese cars from 27.5% to 15%, with the reduced rate taking effect by the end of this month.

U.S. President Donald Trump signed an order on Thursday to implement lower tariffs on Japanese automobile imports and other productions that were announced in July.

Donald Trump signed an order on Thursday to implement lower tariffs on Japanese automobile imports and other productions that were announced in July.(Bloomberg)

The lower tariffs on autos are set to take effect seven days after publication of the order. Some of the tariff relief is retroactive to August 7.

Trump's order also means a reduced U.S. tariff rate on Japanese cars, from the current 27.5% to 15%, is set to take effect by the end of this month, Reuters reported earlier, citing a Japanese government source.

Trump's order says Japan is "working toward an expedited implementation of a 75% increase of United States rice procurements... and purchases of United States agricultural goods, including corn, soybeans, fertilizer, bioethanol (including for sustainable aviation fuel)" and other U.S. products totaling $8 billion per year.

It also reiterates the Japanese government has agreed to invest $550 billion in the United States in projects that will be selected by the U.S. government.