TOKYO: US tariffs on Japanese goods including cars and auto parts are set to be lowered by September 16, Japan’s tariff negotiator Ryosei Akazawa said on Tuesday.
Citing a US Federal Register document dated September 9 that formalised President Donald Trump’s executive order on the US-Japan trade deal, Akazawa said in a press conference the revised tariff rates on Japanese goods will take effect within seven days from its publication.
Washington struck a trade deal with Tokyo in July, agreeing to reduce tariffs to 15% on Japanese goods, including autos, in exchange for a $550 billion package of US-bound investments and loans.
Trump’s signing of the order last week resolved some uncertainty over when the lower tariffs would be implemented.
But Akazawa reiterated on Tuesday that the trade talks have not been “settled”, saying that the most-favoured-nation status for pharmaceuticals and semiconductors has not been included in the executive order.
A separate joint statement released last week said Japan would consistently receive the lowest tariff rates on chips and pharmaceuticals among all trade agreements negotiated by Washington.
However, Akazawa said Japan would continue to urge the US to formalise the commitment through an executive order.
Asked if the $550 billion investment package could be used to finance Nippon Steel’s US Steel deal or SoftBank Group’s planned projects, Akazawa said it would be up to the US to select which initiatives receive funding.
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