The United States is set to fully impose its newly announced 25% tariff on imported heavy trucks on Japan, starting October 1, according to a report by the Asahi Shimbun on September 27.

Unlike a recent trade agreement that saw the tariff on Japanese passenger vehicles reduced from 27.5% to 15%, large trucks will not receive this special exemption. A White House official confirmed the decision to the Asahi Shimbun, stating bluntly, "A truck is not a passenger car... The heavy truck tariff will be fully applied to Japan."

This move comes as the Donald Trump administration broadens its use of tariffs, though there appears to be a softening on pharmaceutical duties for key allies. The previously announced 100% tariff on imported pharmaceuticals is now expected to be capped at 15% for both Japan and the European Union, based on their existing Most-Favored-Nation (MFN) trade status and framework agreements. The Nikkei reported that this suggests a limited impact on the Japanese pharmaceutical industry.

In a related development, the Japanese government is taking steps to bolster its supply chain resilience and foreign investment. The government revised an ordinance for the Japan Bank for International Cooperation (JBIC) to add automobiles and pharmaceuticals to the list of eligible sectors for equity investment and loans in developed nations. According to the Nikkei, this measure is intended to support the $550 billion investment in the U.S. that was agreed upon during the tariff negotiations.

Japanese Finance Minister Katsunobu Kato emphasized the importance of this initiative, saying, "It is extremely important for Japanese companies to build resilient supply chains in strategic sectors. It is necessary to swiftly promote investment going forward." The full application of the truck tariff underscores the US administration's selective approach to trade agreements, emphasizing that specific sectors remain targets despite broader bilateral agreements.

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