US-Japan trade deal: Trump signs order cutting tariffs on Japanese autos to 15%; part of $550 million investment deal

US President Donald Trump on Friday signed an order cutting tariffs on Japanese autos to 15%, moving to implement a trade pact reached with Tokyo earlier this year.Under the new agreement, tariffs on Japanese auto imports to the US will drop from 27.5% to 15%.

Levies on other goods—previously set to rise to 25% from August 1—will also be capped at 15%, according to the executive order published by the White House, reported AFP.The modifications are set to take effect within seven days of their publication in the Federal Register.The deal marks a win for Japan after weeks of uncertainty. Tokyo’s tariff envoy Ryosei Akazawa traveled to Washington on Thursday to press Trump to sign the order, telling reporters that “Washington was expected to revise the rule.”First announced in July, the US-Japan trade pact had appeared to stall when Trump implemented higher tariffs in early August, stacking additional levies on top of existing duties for a wide range of products. The confusion prompted Japan to push for clarity on the agreement.Economists say the pact sets a new benchmark for global tariff negotiations, with the 15% cap likely to become a model in talks with other major US trading partners.