Lower car tariffs kick in

The tariff on vehicles exported from Japan to the United States has officially been lowered from 27.5 per cent to 15 per cent as the two nations tidied up a deal first agreed to in July.

The move is part of a broader agreement in which “reciprocal” tariffs covering most other exports will rise from 10 per cent to 15 per cent rather than the 25 per cent initially threatened by US President Donald Trump.

Those reciprocal duties changed on August 7 but the new tariffs affecting the automotive sector were unchanged until an announcement on September 16, reports the Japan Times.

Japan, South Korea and the UK have all negotiated a reduction in the vehicle tariffs imposed by the Trump administration. 

The UK now faces a 10 per cent tariff on up to 100,000 cars annually, while Japan has no limits on its export volumes. 

South Korea has reached an agreement with the US to lower its automotive tariffs to 15 per cent.