U.S. Cuts Tariffs on Japanese Goods, Impacting Auto Industry Trade

TLDR

• The United States will lower tariffs on Japanese cars and auto parts starting September 16.
• Japan’s tariff negotiator confirmed the tariff rollback through a post on X.
• U.S. tariffs on Japanese goods were initially set at 25% in April before being reduced to 15% in July.
• Toyota expects the tariff reduction to impact its 2026 operating income by 1.4 trillion yen.
• Honda warned that U.S. tariffs could cause a 450 billion yen decline in its profits.

The United States is set to revise tariffs on Japanese goods. U.S. officials will lower tariffs on cars and auto parts starting September 16. Japan’s tariff negotiator confirmed the announcement through a post on X.

U.S. to Cut Tariffs on Japanese Imports

The new tariff revisions follow a Federal Register notice issued on the same day. Akazawa, Japan’s tariff negotiator, stated that duties on vehicles and auto parts will be cut. The tariff rollback represents a shift in U.S. trade policy toward Japan.

Earlier, in April, President Donald Trump set a 25% tariff on cars and auto parts from Japan. By July, he extended this tariff to include all products from Japan. However, the rate was later reduced to 15%, after Japan agreed to invest $550 billion in the U.S. market.

General Motors Faces $1 Billion Loss

The U.S. tariff rollback comes as Japan’s automakers face financial challenges. Toyota’s August report projected a significant drop in its 2026 operating income. The company expects the tariff to reduce its earnings by 1.4 trillion yen, or about $9.5 billion.

Despite these concerns, Toyota remains committed to producing vehicles for U.S. customers. Takanori Azuma, Toyota’s head of finance, emphasized the company’s dedication to the U.S. market. Honda also warned that tariffs could negatively impact its profits, estimating a 450 billion yen loss.

The tariff rollback offers relief to Japanese companies but remains a concern for U.S. automakers. General Motors reported a $1 billion loss in its most recent quarter due to these tariffs.

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