Japanese Prime Minister Shigeru Ishiba on Wednesday said US auto tariffs would be cut to 15 percent from 25 percent, after the two countries reached a trade deal.

The announcement came as the Mainichi newspaper reported that Ishiba has made up his mind to resign following a weekend election in which parties in his coalition garnered three seats short of the number they needed for a legislative majority.

Mainichi said Ishiba would announce his resignation by the end of August.

"We agreed to halve the additional 25 percent tariff rate imposed on cars and car parts since April to 15 percent," which includes the 2.5 percent previously in place, he said.

"We are the first [country] in the world to reduce tariffs on automobiles and auto parts, with no limits on volume," he said, confirming Japanese media reports on the auto tariffs.

On the report about his resignation, Ishiba has since said that "there is absolutely no truth to media reports about my intentions".

However, news agencies are quoting sources close to the prime minister as saying that Ishiba had planned to step down following the bruising upper house election defeat, with Reuters further reporting that he chose not to so so right after the election to prevent political instability as an August 1 deadline for clinching the trade deal with the United States approached. (Agencies)
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Last updated: 2025-07-23 HKT 14:49