0
U.S. President Donald Trump meets Japanese Economic Revitalization Minister Ryosei Akazawa at the White House on July 22, accompanied by Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Japanese Ambassador Shigeo Yamada. / Source: White House via X

The Trump administration has lowered tariffs on Japanese cars to 15%, creating a reversal in trade conditions with South Korea, where autos remain subject to a 25% levy.

According to the Federal Register on September 15, the tariff cut took effect at 12:01 a.m. on September 16 (1:01 p.m. Seoul time). The change stems from a U.S.-Japan trade agreement signed earlier this year.

Previously, Japanese cars faced a total tariff of 27.5% — a base rate of 2.5% plus a 25% surcharge imposed in April. Under President Donald Trump’s executive order on September 4, the surcharge was reduced to 12.5%, leaving an effective rate of 15%.

The move is expected to boost Japanese carmakers’ competitiveness in the U.S. market, especially against Korean vehicles, which shifted from duty-free status to facing a 25% tariff earlier this year.

Seoul and Washington reached a “broad framework” deal on July 30 but remain at odds over how Korea’s pledged $350 billion investment in the U.S. will be structured, managed and shared.

Yeo Han-koo, Korea’s chief trade negotiator, told reporters at Dulles International Airport on September 15 that negotiations were ongoing. “We are working to conclude this as quickly as possible, but we won’t be swayed by every up and down in the process,” he said. “The devil is in the details, and we are negotiating those details intensely with U.S. officials, including Trade Representative Jamieson Greer.”