US-Japan Agree to Reduce Additional Car Tariffs from 25% to 12.5%

Final auto tariff set at 15%, adding existing 2.5%

Ishiba: "Will meet with Trump if necessary"

On his future after the agreement: "Need to review the details first"

US President Donald Trump announced that the reciprocal tariffs on Japanese imports, previously planned at 25%, would be reduced to 15%. The key point was that the additional tariff on automobiles would also be lowered from 25% to 12.5%. Japanese cars will now face a total tariff of 15%, combining the base rate (2.5%) and the new rate.

On the 22nd (local time), President Trump stated on social media that a tariff agreement had been reached with Japan, reducing reciprocal tariffs to 15%. He also reported that Japan would invest $550 billion in the United States and had pledged to open its markets for agricultural products and automobiles.

President Trump did not specify the details of tariffs by product category. According to NHK, citing Japanese government officials, the auto tariffs were also agreed at 15%. The additional 25% tariff would be halved to 12.5%, and with the base 2.5%, the total would be 15%.

Following the news of the tariff agreement, the Nikkei Index surged. As of 9:50 a.m. that day, it rose about 2.3% and easily surpassed the 40,000 mark. Stocks such as Mazda, Subaru, and Mitsubishi Motors jumped by more than 10%. Toyota also rose by around 10%.

Japanese Prime Minister Shigeru Ishiba stated that the tariff negotiations with the United States were "a negotiation that bore fruit for the sake of national interests." He explained that, regarding a direct meeting with President Trump, "telephone or face-to-face meetings will be held as necessary."

Prime Minister Ishiba, who previously refused to resign despite the House of Councillors election loss, cited the tariff negotiations as a pretext. Regarding his future in light of the agreement, he stated, "I cannot comment without carefully reviewing the contents."

According to an emergency poll by Yomiuri Shimbun on the 21st–22nd, the Ishiba Cabinet approval rating dropped to 22%, marking the lowest since its inception last year. Moreover, 54% of respondents said "Prime Minister Ishiba should resign."

Yomiuri reported that on the 23rd, Prime Minister Ishiba is arranging meetings with three former prime ministers: Taro Aso, Yoshihide Suga, and Fumio Kishida. It's very rare for an incumbent prime minister to meet all three former prime ministers together. The move is seen as an attempt to gain the backing of influential party members, amid growing criticism over his refusal to step down.

Tokyo = Ilgyu Kim, correspondent