Japan calls for swift implementation of trade deal with US

Japan said Friday it will ask the United States to implement the bilateral trade agreement "as soon as possible," which includes reducing tariffs on automobiles and parts.

"Japan will urge the United States to fully implement the tariff agreement as soon as possible. We are committed to the stable implementation of the agreement by both countries," Japanese government spokesman Yohsimasa Hayashi said at a press conference.

The Japanese response comes after US President Donald Trump signed an executive order on Thursday to impose 15% tariffs on Japan, which will take effect on August 7.

The text left aside the automotive issue, despite the previously announced indication that the tariff for this sector will also remain at 15%.

Japan and the United States reached a trade agreement on July 23, after months of negotiations, under which the Asian country will have to pay 15% tariffs and invest $550 billion (about €481 billion at the current exchange rate) in the US.

Japan was the fifth most important trading partner for the US in 2024, accounting for 4.3% of all trade and more than $148 billion (€130 billion) in imports from the Asian country, according to government data.

Estimates from the Nomura Research Institute indicate that the 15% customs duty and the 15% duty on engines could reduce Japan's GDP by 0.55% in a year.

If the tariff remained at 25%, Japan's GDP could contract by 0.85%.