The United States will begin applying a reduced tariff of 15% on Japanese automobiles this week under a bilateral trade agreement, the Commerce Department’s International Trade Administration announced. The revised rate, down from 27.5%, takes effect Tuesday following President Donald Trump’s executive order earlier this month.

The new tariff structure for Japanese cars and parts combines the 2.5% base duty with a lowered sector-specific levy, replacing the previous 25% tariff imposed under Section 232 of the Trade Expansion Act of 1962. The measure reflects Washington’s deal with Tokyo aimed at easing trade tensions and boosting bilateral auto trade.

South Korean vehicles, however, remain subject to the 25% tariff under the same law. Although the US and South Korea reached a separate trade deal in July to lower duties on Korean cars to 15%, the agreement has yet to take effect as negotiations over implementation continue.

Korea’s Trade Minister Yeo Han-koo, who arrived in Washington on Monday, reiterated Seoul’s commitment to securing swift tariff relief for Korean automakers. “As we are in the negotiation process, we will stay level-headed,” he told reporters, ahead of meetings with US Trade Representative Jamieson Greer and other officials.

The US remains South Korea’s largest auto export market, accounting for $34.7 billion—or 49.1%—of the country’s total car exports last year. Hyundai Motor Group shipped about 970,000 vehicles to the US in 2024, while GM Korea exported around 410,000 units.

The tariff disparity underscores ongoing trade complexities as the US seeks to balance national security concerns with economic partnerships. For now, Japanese automakers gain a competitive advantage, while South Korean manufacturers await clarity on when their tariff reduction will take effect.