The United States has finally reduced the car tariff that Japan has been longing for to 15%.
According to a front-page report by the "Yomiuri Shimbun," U.S. President Trump signed an executive order on the 4th based on the Japan-U.S. agreement regarding tariff measures. The tariff rate for imported passenger vehicles from Japan will be reduced from the current 27.5% to 15%. It is expected to be implemented in September. The Japan-U.S. side agreed to reduce the car tariffs in July, but the U.S. did not clearly specify the implementation time, and Japan is urging the president to issue the executive order earlier. Key points of the presidential order
After being published in the Federal Register, it instructs the Secretary of Commerce to take action within 7 days. On the press conference held in Washington on the 4th, Economic Revitalization Minister Akasaka emphasized, "We welcome this executive order, considering it as a steady implementation of the Japan-U.S. agreement," and stated that the reduction in car tariffs would take effect "at most two weeks."
Regarding "reciprocal tariffs," it also clearly states special measures to alleviate the burden on Japan. The Japan-U.S. agreement was reached in July, but it was not implemented. Projects with regular tariff rates below 15% are unified to 15%, and projects with rates above 15% are not added. When the new tariff rates were introduced on August 7, they are applied retroactively, and any overcharged amount will be refunded.
Other than reducing the tariff rate, it also clearly defines the expansion of the scope of imports from the U.S., which Japan has committed to.
Japan will increase its quota for duty-free rice imports (approximately 770,000 tons per year) under a program called "Minimum Access (MA)" by 75% for the U.S. It will also purchase U.S. agricultural products worth $8 billion (about 1.2 trillion yen), including corn and soybeans.
This also includes a $550 billion (about 80 trillion yen) investment to the U.S. agreed upon by Japan and the U.S. The U.S. government said it will choose the investment destination and emphasized that it will "create hundreds of thousands of American jobs, expand domestic manufacturing, and ensure U.S. prosperity." Japan will also purchase commercial aircraft and defense equipment made in the U.S.
On the other hand, if Japan does not fulfill its commitments, it will "modify the order when necessary," indicating a stance to restore the tariff rates.
Additionally, the Japanese and U.S. governments issued a joint statement on the 4th, in conjunction with the signing of the executive order, stating that they will additionally purchase $7 billion worth of U.S. energy, including liquefied natural gas (LNG), and 100 Boeing planes. According to the "Defense Capability Development Plan," annual procurement of U.S.-made defense equipment and semiconductors will also increase by several billion dollars.
Akasawa met with U.S. Secretary of Commerce Rattner at the U.S. Department of Commerce on the 4th and signed a memorandum of understanding regarding the $550 billion investment to the U.S. based on the Japan-U.S. agreement. "Today is a historic day, and we have entered a new era of U.S.-Japan relations," said Rattner.
Original: www.toutiao.com/article/1842484255929472/
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