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On July 26, Japan disclosed its interpretation of the tariff agreement struck with the Trump administration, encompassing market-opening policy adjustments for U.S. automobiles, though specific figures were omitted. The accord mandates that Japan reassess its purchase subsidies for fuel cell vehicles, which currently exceed those for battery-electric vehicles. Concurrently, Japan will exempt U.S. passenger vehicles that adhere to safety standards from additional testing. The Office of the United States Trade Representative highlighted in its report that fuel cell vehicle subsidies are excessively high and urged for modifications. The United States anticipates that these adjustments will bolster sales of American electric vehicles, including Tesla, in Japan.
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