Japan seeks swift cut to U.S. auto tariff following trade deal
Ishiba said the government will take "all necessary measures" to mitigate the impact of higher U.S. tariffs on Japanese exports, adding that the details of an executive order signed by U.S. President Donald Trump to implement a 15 percent "reciprocal" tariff are being examined.
Chief Cabinet Secretary Yoshimasa Hayashi said at an earlier press conference that the executive order will help reduce uncertainty over U.S. trade policy and "downside risks" to the Japanese economy.
The reciprocal tariff of 15 percent targeting Japan will take effect on Aug. 7, instead of Friday as initially expected. Based on the bilateral deal reached last month, the United States will reduce its tariff on imported Japanese cars to 15 percent from the current 27.5 percent.
"We will continue to call on the United States to take measures to implement the bilateral agreement swiftly, including reductions in tariffs on cars and auto parts," Ishiba told reporters.
"We have 4,318 items that are exported to the United States. Based on the progress seen today, we will take all necessary steps to minimize the tariff impact on each," he said.
Japan is among nations that have seen their tariff rates lowered from levels earlier unveiled by the Trump administration.
Japan initially sought the removal of the higher tariffs, but the United States apparently did not budge. Japan's negotiation team, led by economic revitalization minister Ryosei Akazawa, settled for lower rates.
Akazawa said Thursday that it may take time for the 15 percent auto tariff to be implemented, citing a tariff deal on autos between Britain and the United States as a precedent.
With the auto sector a major driver of Japan's export-reliant economy, higher U.S. duties on Japanese cars deal a blow to carmakers such as Toyota Motor Corp. and Honda Motor Co., given the importance of the U.S. market to their bottom lines.
Trump slapped a 25 percent levy on U.S.-bound cars in April on top of a 2.5 percent duty already in place.
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