US Japan Trade Deal Sparks Major Tariff Changes Automotive Exports Plummet 13.8 Percent in August Market Shift

17/09/2025 3 min
US Japan Trade Deal Sparks Major Tariff Changes Automotive Exports Plummet 13.8 Percent in August Market Shift

Listen "US Japan Trade Deal Sparks Major Tariff Changes Automotive Exports Plummet 13.8 Percent in August Market Shift"

Episode Synopsis

Listeners, welcome to Japan Tariff News and Tracker for September 17, 2025.Big news for importers, exporters, and anyone following U.S.-Japan trade: Just yesterday, new tariff reductions on Japanese imports to the United States officially took effect. This is part of the U.S.-Japan trade agreement finalized back in July and signed into law by Executive Order 14345 earlier this month, as reported by internationaltradeinsights.com.Under the new agreement, Japanese automobiles, auto parts, and trucks that previously had a most-favored nation duty rate below 15% are now subject to a flat 15% U.S. tariff. Even though this is a reduction from the 27.5% rate that had been imposed under President Trump’s earlier tariff actions, it remains substantially higher than the pre-tariff baseline of just 2.5%. Goods that already faced tariffs above 15% won’t see any additional duties beyond that original rate. For the details, vehicles and their parts need to be classified in new, specific tariff subheadings now enforced at the border according to the trade notice this week from the Department of Commerce.Civil aircraft and aircraft parts of Japanese origin continue to be exempt from steel, aluminum, and copper tariffs, as well as these new reciprocal tariffs, making them a clear outlier under the trade agreement.Listeners should be aware that all other Japanese goods are now also subject to the flat 15% reciprocal tariff rate—this will even apply retroactively to eligible imports all the way back to August 7, 2025. That means importers need to review their shipments and file corrections to comply with the new rules, as described in official customs notices.The biggest headline today is the immediate impact this has had on Japan’s export numbers. According to Japan’s Finance Ministry data just released and reported by TTNews.com, Japanese exports to the U.S. fell a dramatic 13.8% in August year-on-year. That marks five months in a row of declining shipments to the American market, heavily influenced by the automotive tariffs. U.S. tariffs on Japanese cars and auto parts now sit at 15%, down from Trump’s 27.5%, but still a major hurdle compared to the 2.5% world trade baseline that existed before these disputes began.Meanwhile, Japan’s global exports overall remained nearly flat, dropping by just 0.1%. Imports from the U.S. into Japan actually rose by 11.6%, highlighting the complexity and reciprocity now defining this trade relationship.As more details emerge and the trade environment continues to evolve, the team here will be tracking every major headline and regulatory update at the intersection of Japan, the U.S., and global tariffs.Thank you for tuning in to Japan Tariff News and Tracker. Remember to subscribe for the latest insights. 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

More episodes of the podcast Japan Tariff News and Tracker