US Trade Negotiation Representative to Visit America, Urging Reduction in Auto Tariffs! Japan Currently Faces 27.5% Auto Tariffs

Japan's Chief Trade Negotiator plans to depart for the US on Tuesday, with Tokyo hoping to urge Washington to reduce auto tariffs according to last month's trade agreement.

This is a first-time visit to Washington since the trade agreement was announced, following eight visits from April. The agreement includes US commitments to impose a 15% tariff on most Japanese exports.

The agreement has spared Japan from Trump's earlier threat of a 25% worst-case scenario, but the 15% overall tariff rate is still higher than the previous 10% implemented over the past few months. The new tax rate will take effect on August 7th. Auto tariffs are expected to decrease as well, but when they will start decreasing remains unclear.

Currently, Japan faces auto tariffs of 27.5%, including the newly imposed 25% and previous 2.5%. This will have a massive impact on Japan's economy. The automotive industry is the largest component of Japan's exports to the US and also plays a leading role in employment and wage growth.