Japan’s top trade negotiator plans to leave for the US on Tuesday as Tokyo aims to urge Washington to proceed with a cut to tariffs on cars as promised in last month’s trade deal.
Ryosei Akazawa’s trip to Washington will be his first following the announcement of the trade agreement. The deal, reached after his eighth visit to the US capital since April, resulted in a pledge by the US to assess a 15% tariff on most imports of Japanese goods.
The deal allowed Japan to avoid a worst-case scenario of a 25% levy as threatened previously by US President Donald Trump, but the universal levies will rise from the 10% rate imposed in recent months. The new rate is set to kick in on Thursday, Aug 7. Car tariffs are set to decline, but it remains unclear when that reduction will start.
With car tariffs currently at 27.5%, including a newly assessed 25% this year and a previous 2.5% rate, the impact on Japan’s economy is expected to be large. The sector accounts for the biggest component of exports to the US and serves as a pillar of employment and a trend setter for wage growth.
Source: theedgemalaysia