Order on tariffs signed

Donald Trump has signed an executive order to reduce tariffs on Japanese car imports from 27.5 to 15 per cent, easing uncertainty for companies such as Toyota, Nissan and Honda. 

It formalises an agreement, which was announced in July, to apply a 15 per cent levy to almost all Japanese exports to the US including vehicles and pharmaceuticals.

Tokyo has also agreed to invest about US$550 billion in projects in the States and gradually open its economy to American goods, including cars and rice, says the White House.

The agreement follows months of talks between Japan and the US in the wake of America’s president, pictured above, announcing tariffs on many countries in April.

“Finally,” says Ryosei Akazawa in a repost a White House announcement about the executive order, which was signed off on September 4.

According to the order, the deal will help reduce the US’ trade deficit with Japan and provide American businesses “breakthrough openings”.

The White House says Japan has committed to buying US$8b worth of American goods annually, including agricultural products, fertilisers and bioethanol. It adds Tokyo has also agreed to gradually increase its purchases of US-grown rice by 75 per cent.

The Japanese economy is reliant on selling goods abroad, with the US its biggest export market. Cars account for about one-fifth of the country's total exports.

Last month, Toyota warned that the impact of US tariffs could cost it about US$10b this year. Shares in Japanese carmakers and parts suppliers rose on September 5 in Tokyo after the executive order was signed.