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yesterday

U.S. Puts 15% Tariff on Japanese Autos as Korea Awaits Parallel Cut

The change implements a July pact capping duties at 15%, triggering refunds of excess charges back to Aug. 7.

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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

  • Effective Sept. 16, the Commerce Department began applying a 15% tariff to Japanese passenger vehicles, light trucks and auto parts under the bilateral deal.
  • The new rate replaces the previous effective 27.5% burden that combined a 25% sectoral levy with the 2.5% base auto duty.
  • The implementation includes a 15% cap for many Japan-origin goods retroactive to Aug. 7, with importers eligible for refunds of excess “stacking” tariffs.
  • South Korean vehicles remain subject to a 25% sectoral tariff as talks on a similar reduction continue, creating a 10 percentage point pricing gap in the U.S. market.
  • Japan’s August data show exports to the U.S. down 13.8% year on year with auto shipments plunging 28.4%, alongside Tokyo’s pledge of a $550 billion U.S. investment under the pact.