---
title: "US-Japan On Brink Of A Deal To Slash Trump Tariffs On Automakers: Report"
description: "The U.S. and Japan are close to finalizing a deal to reduce tariffs on Japanese car imports from 27.5% to 15%. This agreement is expected to be formalized within two weeks following a U.S. presidentia"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/255982088.md"
published_at: "2025-09-04T13:33:06.000Z"
---

# US-Japan On Brink Of A Deal To Slash Trump Tariffs On Automakers: Report

> The U.S. and Japan are close to finalizing a deal to reduce tariffs on Japanese car imports from 27.5% to 15%. This agreement is expected to be formalized within two weeks following a U.S. presidential executive order. Japan's trade negotiator has urged the U.S. to expedite this order, which will clarify tariff applications. Despite concerns from U.S. automakers, the deal has received support from industry leaders. Additionally, Japan plans to increase U.S. rice imports and purchase U.S.-made aircraft as part of the agreement.

The United States and Japan are reportedly nearing a deal to reduce tariffs on Japanese car imports. The agreement is expected to be formalized within two weeks of a U.S. presidential executive order.

## US, Japan Near Deal To Cut Auto Tariffs To 15% Soon

A Japanese government source informed Reuters that the U.S. and Japan are in the final stages of negotiations to implement lower tariffs on imported Japanese automobiles. The new tariff rate will be 15%, a significant drop from the current 27.5%.

The publication reported that the reduced tariff is expected to come into effect by the end of September. The exact date will be specified in the U.S. presidential executive order, which is still under discussion. The final decision will rest with U.S. President **Donald Trump**.

In July, the US agreed to lower tariffs on Japanese auto imports, but the timing remains uncertain as Trump has not signed an executive order. Japan’s top trade negotiator, **Ryosei Akazawa**, traveled to Washington on Thursday to urge the US to issue the executive order.

The executive order is expected to clarify that the 15% levy agreed to in July will not be applied on top of higher tariffs for Japanese imports. Instead, items previously taxed below 15% would be raised to that level.

## Lutnick Dismisses US Automakers’ Concerns

This development follows a series of events that have shaped US-Japan trade relations. In July, even after objections from the **American Automotive Policy Council**, a group that represents major U.S. automakers such as **General Motors** GM, **Ford** F and **Stellantis** STLA, Commerce Secretary **Howard Lutnick** dismissed concerns of American automakers over the Japan trade deal, stating that the CEOs were in favor of the new agreement.

After the announcement of the trade deal in July, shares of Japanese automakers such as **Toyota** TM, Honda HMC and **Nissan** NSANY had seen a surge.

In late August, Lutnick stated that a massive $550 billion investment from Japan was due to be finalized as part of a deal between the U.S. and Japan. As per Reuters, the two governments are also coordinating to add context to the tariff deal in the executive order, including Japan's plans to boost U.S. rice imports and buy U.S.-made aircraft.

After the Appeals Court ruling the tariffs as “Illegal,” President **Donald Trump** warned that a Supreme Court ruling overturning his administration's tariff policies could prove costly for the U.S., emphasizing the importance of tariffs to trade agreements with major allies, including Japan.

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*Image via Shutterstock*

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