U.S. Auto Tariff on Japan Could Be Lowered to 15% in Mid-September, U.S. Source Says

By Hiroyuki Tanaka / Yomiuri Shimbun Correspondent

1:00 JST, August 14, 2025

WASHINGTON — A reduction to 15% of a tariff on imported Japanese automobiles could take effect around 50 days after a bilateral agreement was reached in late July, a U.S. Treasury Department official told The Yomiuri Shimbun on Monday.

This means the implementation of the reduction would take place in mid-September. However, it remains to be seen whether the United States will actually reduce the tariff.

Washington and Tokyo agreed on July 22 to lower the tariff on cars and auto parts imported from Japan from the current 27.5% to 15%. However, this tariff cut is not stated in U.S. government documents, which raises concerns in Japan about whether the reduction would actually happen.

Speaking to The Yomiuri Shimbun, a U.S. Treasury Department official cited the May agreement with the U.K. as a precedent, saying that the agreement with the U.K. took about 50 days before its implementation and that is the only precedent the United States can refer to. The official added that it could take longer, or it could be sooner.

On Aug. 7, economic revitalization minister Ryosei Akazawa said the U.S. government had agreed to revise, at a suitable time, a presidential order to include Japan in an exemption from “reciprocal” tariffs. He also confirmed that a separate presidential order to lower auto tariffs would be issued at the same time. The Japanese government will continue to push for an early implementation of the tariff reduction.