Overview

• President Donald Trump signed an executive order on Sept. 4 that reduces the tariff on Japanese automobiles to 15% from 27.5%, with application reported as likely this month.
• Economy Revitalization Minister Ryomasa Akazawa returned to Tokyo on Sept. 6, stressing that tariffs still apply despite the cut and pledging economic impact analysis and necessary responses.
• The government plans a comprehensive task force to craft measures such as financing support for affected industries as companies gauge costs and investment implications.
• Terms for semiconductors and pharmaceuticals remain unsettled, and Trump previously suggested potential triple-digit tariffs on chips and related equipment, leaving significant risk unresolved.
• Political leaders called the move a limited step forward and urged swift support; the Diet’s budget committee will hold a closed-session review with Akazawa during the week of Sept. 16, and opposition figures noted 15% is far above the earlier 2.5% passenger-car rate.