Trump's lowered auto tariff for Japan to take effect within 2 weeks

US President Donald Trump has signed an executive order formally implementing a trade deal his administration struck with Japan in July, with a lowered tariff on Japanese car imports expected to come into effect later this month, Report informs via Kyodo News.

The order, released by the White House, said the United States will reduce its tariff on automobiles from Japan to 15 percent from the current rate of 27.5 percent, in line with the trade agreement.

After meeting with US Commerce Secretary Howard Lutnick in Washington, Japan's top tariff negotiator Ryosei Akazawa told reporters that he cannot say for certain when the lowered auto tariff rate will go into effect, but "it shouldn't take two weeks from now."

The White House said details of the reduction will be available within seven days after the contents of the order are published in the Federal Register, which contains revised rules and various government notices.

Additionally, Trump's directive granted special treatment on what the United States calls "reciprocal" duties, as also agreed in the July 22 bilateral deal. Imports from Japan with preexisting tariffs of 15 percent or higher will not face any additional levy, and duties on other items will be capped at 15 percent.

In return for Japan's promise to invest heavily in the United States during Trump's second term, most of its exports to the world's largest economy are now subject to a 15 percent tariff instead of 24 percent or 25 percent, as previously threatened.

However, the United States had yet to implement either the reduced auto tariff rate or the "no stacking" treatment.

Akazawa, who serves as minister for economic revitalization, signed a memorandum of understanding with Lutnick on Japan's planned "strategic investments" in the United States.

"This is historic," Lutnick said at a signing ceremony. "We are really just thrilled to be doing it together, and we will create an extraordinary partnership going forward."

Japan has pledged to invest up to $550 billion in the United States, with Japanese officials saying the figure represents a combination of investments, loans and loan guarantees from government-backed financial institutions.