September 9, 2025 | Washington, D.C., USA (The Arabian Wall Street) — The United States is reportedly set to lower tariffs on Japanese exports, including automobiles, by September 16, in a move aimed at easing trade tensions and reinforcing economic ties with Tokyo, according to Reuters.
Japan’s chief tariff negotiator Ryosei Akazawa confirmed that the revised tariff rates will take effect within seven days of publication in the Federal Register, citing President Donald Trump’s executive order formalizing the trade deal.
Details of the agreement
Signed in July, the agreement reduced reciprocal tariffs on Japanese imports from 27.5% to 15%. It also included a $550 billion Japanese investment in the United States, designed to create hundreds of thousands of jobs and boost domestic manufacturing. The signing resolved uncertainty over when tariff cuts would take effect.
Akazawa noted, however, that trade talks are ongoing. The executive order did not address pharmaceuticals and semiconductors, sectors where Japan continues to seek lower tariffs and most-favoured-nation treatment.
Japan’s export pressures
Japan’s exports dropped 2.6% year-on-year in July to $63.4 billion (¥9.36 trillion), the sharpest decline in over four years, as higher U.S. tariffs weighed on shipments.
Market reaction
Equities in Tokyo surged in early trading. The Nikkei 225 Index touched a record 44,185.73 before profit-taking pulled it back to 43,533.98. The Topix Index slipped 0.5% after an earlier gain of 0.8%.
Semiconductor-related shares outperformed, buoyed by strong results from U.S. peers. Advantest Corp., a key supplier to Nvidia, rose more than 6%, while Screen Holdings added 2.6% and Sony gained 0.8%.
The tariff cut signals progress in U.S.-Japan trade relations, though Tokyo continues to press Washington for wider concessions in high-value industries.
