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5h ago

U.S. Implements 15% Tariff on Japanese Autos After Bilateral Deal

Commerce Department guidance caps duties at 15% with refunds under a no-stacking rule.

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Newly manufactured cars of the automobile maker Subaru awaiting export are parked at a port in Yokohama, south of Tokyo, Japan March 27, 2025. REUTERS/Issei Kato/File Photo
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Overview

  • An International Trade Administration notice put the new 15% rate into effect Tuesday, following the Sept. 4 executive order that operationalized the U.S.–Japan agreement.
  • The cut reduces the effective duty from 27.5% to 15% for Japanese automobiles and key parts such as engines and transmissions.
  • The guidance formalizes a no-stacking policy and provides retroactive refunds for excess duties collected since Aug. 7.
  • South Korean vehicles remain subject to a 25% sectoral levy as follow-up talks on a similar 15% cap continue with no clear start date.
  • Japan’s exports to the United States fell 13.8% in August, led by a steep drop in auto shipments, and industry groups say the 15% rate still weighs on margins compared with pre-2025 levels.