- Trump cuts U.S. tariffs on Japanese cars and imports from 25% to 15%.
- Japan commits $550 billion investment in the U.S., boosting trade and economic relations.
- Ishiba hails the agreement, emphasizing investment over tariffs amid political party pressure.
Japan's Prime Minister Shigeru Ishiba expressed approval of US President Donald Trump's decision to sign an order for reduced tariffs on automobiles and other imports from Japan, viewing it as a measure that alleviated uncertainty for vital industries. The agreement to lower the rate from 25 percent to 15 percent was reached by both parties on July 22.
Ishiba stated on Friday that tariff negotiations with the U.S. were the government's main focus, and we have dedicated all our resources to reach an agreement in the most favorable manner as quickly as possible. The manner in which it was accomplished is truly outstanding.
The move on tariffs occurs as the Japanese prime minister encounters pressure from conservative opponents within his party to step down due to the party's defeat in the July elections.
In Washington, Japan's leading tariff negotiator, Ryosei Akazawa, and US Commerce Secretary Howard Lutnick signed a joint statement, affirming a $550 billion Japanese investment in projects within the US.
Akazawa stated that Trump's directive reduces tariffs on cars and auto components to 15 percent, without stacking onto the current rate, and those reciprocal tariffs on the majority of other products are also established at this rate without stacking. He stated that aircraft and aircraft components will be exempt from reciprocal tariffs.
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The two allies reached an agreement in July, but shortly thereafter, Japanese officials found that the initial deal had increased current rates by 15 percent and raised objections. Washington recognized the error and consented to correct it and reimburse any overpaid import duties.
Ishiba mentioned that Akazawa delivered the prime minister's letter to Trump, expressing a desire to create a golden era in Japan-US relations and inviting the president to come to Japan.
He embraced the agreement due to his ongoing advocacy for investment over tariffs and emphasized the significance of executing the deal diligently and without delay.