U.S.-Japan Trade Deal: Tariffs Lowered, Investments Boosted

In a significant trade development, U.S. tariffs on Japanese goods, notably cars and auto parts, are set to decrease by September 16, according to Japan's tariff negotiator, Ryosei Akazawa.

A U.S. Federal Register document dated September 9 detailed the executive order by President Trump, formally confirming the new trade terms, which will see tariffs on Japanese goods reduced to 15%. This agreement promises a $550 billion investment package to benefit U.S.-bound initiatives.

Despite resolving some uncertainties, Akazawa highlighted that discussions are ongoing, particularly regarding pharmaceuticals and semiconductors. A joint statement underlines Japan's advantageous position in tariff rates, though Japan continues to lobby for formal commitments.

(With inputs from agencies.)