Listeners, welcome to Japan Tariff News and Tracker. Today brings a major—and long-anticipated—development in U.S.-Japan trade policy. On September 5, the White House finalized an executive order to cut tariffs on Japanese automobiles and auto parts from 27.5% to 15%. The reduction is retroactive to August 7 and is expected to take effect mid-September, once published in the Federal Register. This deal is the most substantial U.S. tariff relief Japan has seen in years, and it reshapes the competitive landscape for Asian automakers. Japanese brands like Toyota and Honda gain a distinct pricing edge in America, while South Korean competitors such as Hyundai and Kia now face a relative disadvantage, with their tariff rates left unchanged. The U.S. and Japan reached this agreement as part of a sweeping $550 billion Japanese investment deal, with funds directed toward U.S. infrastructure, defense, and aircraft contracts.Commerce Secretary Howard Lutnick has revealed that the U.S. and Japan will share profits from these projects on a 50-50 basis until Japan recoups its initial investment. Afterward, profits shift strongly in America’s favor, with a 90/10 split. Lutnick emphasized that Japanese taxpayers won’t bear the long-term project cost and Japanese consumers should see benefits from the lower tariff rates. The U.S. government has committed to channeling these funds into job-creating sectors, including nuclear energy and critical antibiotic production.This agreement comes amidst growing legal and political scrutiny of tariff policy. The U.S. Supreme Court is set to hear a fast-tracked case in November assessing whether previous Trump administration tariffs—enacted under the International Emergency Economic Powers Act—met legal standards for presidential authority. Congress is simultaneously exploring new laws to bring more oversight to executive tariff decisions.On the ground, the impact for automakers is immediate. Toyota projects a $9.5 billion tariff burden through March 2026, with $3 billion already logged as losses; General Motors anticipates $4 to $5 billion in added costs and is expanding U.S. production as a result. Meanwhile, European competitors like Volkswagen have also reported multi-billion-dollar losses tied to these tariffs, and suppliers are being compelled to increase their prices or demand upfront payments.Japanese business sentiment, however, has improved since the agreement’s announcement, as reported by recent government surveys. Firms now anticipate more predictable trade terms and easing tensions between Tokyo and Washington.Listeners, be sure to subscribe for more updates as the legal landscape evolves and watch for shifting dynamics across the global automotive and manufacturing sectors. Thank you for tuning in. This has been a quiet please production, for more check out quiet please dot ai.For more check out https://www.quietperiodplease.com/Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94QThis content was created in partnership and with the help of Artificial Intelligence AI

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