Japanese officials are in the final stages of talks with their counterparts in Washington on a plan to lower US tariffs on cars imported from Japan as promptly as possible.
The negotiations, aimed at reducing the US tariff rate on Japanese cars from 27.5% currently to 15% and a kickoff date less than two weeks after the issuance of a US presidential executive order, a Japanese government source told Reuters on Thursday.
That means the new smaller tariff on Japanese cars should take effect by the end of this month, according to the source, who declined to be identified, as the matter is confidential.
ALSO SEE: China Markets Sink on Tech Selloff, Talk of Regulatory Curbs
The exact date to be specified in the executive order is still under discussion, the source said, adding that the final decision would rest with US President Donald Trump.
The US embassy in Tokyo did not immediately respond to a request for comment. The Japanese government declined to comment.
The United States agreed in July to lower tariffs on imports of Japanese automobiles, but the timing remains unclear as Trump has yet to sign an executive order.
Japan’s top trade negotiator Ryosei Akazawa flew to Washington on Thursday to press the United States over issuing the executive order.
The executive order is also expected to include provisions that the 15% levy agreed in July would not be stacked on Japanese imports that are subject to higher tariffs, while items previously subject to less than 15% tariffs would be adjusted to 15%, the source said.
Talks on US rice and aircraft
The two governments are working to include in the executive order some context on the tariff deal, including Japan’s plans to expand US rice imports and purchases of US-made aircraft, according to the source.
A joint statement outlining the July agreement and a memorandum clarifying rules for Japan’s planned $550 billion US-bound investment package are also expected to be issued alongside the executive order.
The investment package, which will come in the form of equity, loans and guarantees from Japan’s government-owned banks, was agreed as part of the July trade deal.
“The talks are now in their final phase,” the source said. “Once Minister Akazawa arrives in Washington, the aim is to have the executive order issued swiftly. We will then move on to formulating plans to execute investment projects,” he said.
- Reuters with additional editing by Jim Pollard
ALSO SEE:
Japan Wants Issues Sorted Before Trade Rep Seals Big Tariff Deal
India’s Modi ‘Avoiding Trump’s Phone Calls’ As Tariffs Hit: Reports
US Pushing Bank of Japan to Hike Rates? No, Says Tokyo
Political Uncertainty in Japan Clouding Rate Hikes, Budget
Toyota Slashes Profit Forecast, Sees $9.5 Billion Tariff Hit
Japan Debates How to Handle Rushed Tariff Deal With US
India, Once Close to Deal With US, Now Faces 50% Tariffs
Dozens of Countries Hit With Steep US Tariffs, But Some Feel Relief
Nikkei Jumps After Trump Strikes 15% Tariff Deal With Japan
S Korea to Invest $450bn in US Projects, Energy; Gets 15% Tariff
Japanese PM Ishiba Vows to Kick on Despite Loss of Upper House
