Washington: U.S. President Donald Trump’s administration announced on Monday that it will commence applying a reduced tariff of 15 percent on Japanese automobiles starting this week, aligning with a bilateral trade agreement.

According to Yonhap News Agency, the International Trade Administration under the Commerce Department revealed in a Federal Register notice that the new tariff rate will become effective on Tuesday. This follows President Trump’s executive order earlier this month to officially enforce the trade deal with Japan. Under this agreement, the U.S. agreed to lower tariffs on Japanese automobiles and parts from the current 27.5 percent, which includes a 2.5 percent standard tariff and a 25 percent global sector-specific duty. Meanwhile, South Korean automobiles remain subject to the 25 percent sectoral tariff under Section 232 of the Trade Expansion Act of 1962, a law granting the president authority to adjust imports deemed a threat to national security.

The United States has also agreed to reduce the tariff on South Korean vehicles to 15 percent as part of a bilateral trade deal concluded in July. However, the implementation date remains uncertain pending ongoing negotiations on its specifics. Upon his arrival in the U.S. on Monday, Korea’s Trade Minister Yeo Han-koo emphasized Seoul’s continued efforts to expedite the tariff reduction for Korean automobiles. He stated to reporters, “As we are in the negotiation process, we will stay level-headed,” indicating his plans to meet with U.S. Trade Representative Jamieson Greer and other officials for follow-up negotiations on the July trade deal.

The U.S. is a significant market for South Korean automobile exports. Last year, South Korea’s car exports to the U.S. amounted to $34.7 billion, accounting for 49.1 percent of its total car exports. Hyundai Motor Group and GM Korea exported approximately 970,000 and 410,000 units to the U.S., respectively, during the same period.