Japanese Imports Will Be Subject to Baseline 15% Tariff
The White House says that imports from Japan will be subject to a baseline 15% tariff rate, in a fact sheet published July 23, the day after the president heralded the deal on Truth Social.
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Japan's prime minister said in the case of automobiles, the 15% is actually 2.5% most-favored nation status level plus a 12.5% tariff.
The fact sheet said nothing about treatment for goods currently carved out of reciprocal tariffs, such as pharmaceuticals and electronics.
"In addition to raising billions in revenue, this new tariff framework, combined with expanded U.S. exports and investment-driven production, will help narrow the trade deficit with Japan and restore greater balance to the overall U.S. trade position," the fact sheet said, and said it's part of an effort "to establish a consistent, transparent, and enforceable trade environment."
U.S. automakers "still need to review the details of the U.S.-Japan agreement," Matt Blunt, president of the American Automotive Policy Council, said in an emailed statement, "but any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,”