These tariffs will take effect seven days after the new decree is published in the US Federal Register, which has not yet occurred.

US President Donald Trump signed a decree reducing tariffs on Japanese cars to 15% instead of 27.5%, stipulating that tariffs on most Japanese products will not exceed this new limit.

The tariffs will take effect seven days after the decree is published in the US Federal Register.

Tokyo welcomed the decree on Friday. Chief Cabinet Secretary Yoshimasa Hayashi said it represents a “faithful and tangible implementation of the agreement” reached between the two countries in July.

The signing came as Japanese tariff negotiator Ryosei Akazawa visited Washington on Thursday to urge Trump to sign after delays.

The decree states that the agreement with Japan sets a 15% cap on tariffs for most Japanese products exported to the United States.

However, some sectors such as aviation industries, raw materials not available in the US, or generic drugs are exempt from the 15% rate according to the decree.

With a 15% tariff instead of over 25% on cars, Japan receives treatment similar to that granted to the European Union.

The agreement with Japan was signed on July 22 and includes measures by Japanese companies, notably investments worth “$550 billion” that keep “90% of their profits in the United States,” according to President Trump.

In addition to these investments, Japan pledged to purchase “$8 billion worth of American products” without specifying a timeline.

Japan also promised to buy “American-made commercial aircraft, notably 100 Boeing planes,” according to the White House, as well as “lifting very old restrictions” preventing American cars from entering the Japanese market.

The agreement does not include any changes to US tariffs on steel and aluminum, which remain at 50%.