Japan to Receive All-Inclusive 15% Reciprocal Tariff
Once the U.S.-Japan deal is put to paper, Japanese goods will be subject to a flat 15% tariff, as long as the most-favored nation tariff that applies is at that rate or lower. For goods above 15% MFN, just the typical duty will apply, with no additional reciprocal tariff.
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A Trump administration official, speaking on background, said that will be the case.
Japan's top negotiator told reporters in Japan that the U.S. acknowledged it made an error in the executive order when it said that the 15% reciprocal tariff stacks on existing duties. For Japanese beef, that meant a total 41.4% tariff rate.
Japanese outlets reported that the commerce secretary assured Ryosei Akazawa that excess payments from Aug. 7 to the time a new executive order is issued will be refunded.
The timing, however, for Japanese autos and auto parts to go from a 25% rate plus MFN to a flat 15% is not yet known.