On the 19th, U.S. Commerce Secretary Lutnick indicated in a CNBC interview that an agreement document regarding trade negotiations with Japan is expected in a few weeks. The U.S. administration plans to review the method of applying a 15% reciprocal tariff with Japan as per the agreement, requiring an amendment to an executive order. The executive order required to lower automobile tariffs from 27.5% to 15% is also expected to be implemented around the same time.
Concerns have arisen over discrepancies in tariffs, with Minister Akazawa explaining the situation in the Japanese parliament. When asked about the timing of the agreement document’s release, Lutnick mentioned that it will follow the model of recent agreements with Japan and South Korea.
The U.K., which agreed to set a low tariff quota of 10% on up to 100,000 cars per year, took nearly two months from agreement to implementation. Consequently, the timeline for Japan’s car tariff reduction, agreed upon on July 22, is eyed for mid-September.
The current reciprocal tariffs add 15% to the existing rates. Under the conditions of the U.S.-Japan agreement, the U.S. government will refund any excess payments made since the tariffs’ activation on August 7, if the tariff rate exceeds 15%.
by MagazineKey4532