President Trump issued Sept. 4 an executive order implementing a trade framework agreement with Japan that was announced in July.
Under the EO the U.S. will apply a baseline 15 percent tariff on nearly all imports from Japan, including automobiles and auto parts. If the applicable column 1 duty rate is less than 15 percent, the products will be subject to a 15 percent tariff; otherwise, the column 1 duty will be imposed and no additional duty will be assessed. The Department of Commerce may issue rules determining what are considered products of Japan subject to the baseline tariff.
This tariff treatment is retroactive to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Aug. 7, 2025, and refunds of excess tariffs paid will be available. However, U.S. Customs and Border Protection has advised the trade community not to file post-summary corrections or protests until it issues instructions on how those requests for refunds should be submitted.
Effective upon publication of a relevant notice in the Federal Register (1) Japanese goods falling under the World Trade Organization Agreement on Trade in Civil Aircraft (except unmanned aircraft) will no longer be subject to reciprocal or Section 232 tariffs and (2) Japanese automobiles and auto parts will be subject to at least a 15 percent tariff in accordance with the approach outlined above. These changes are not retroactive.
The EO authorizes the elimination of (but does not itself eliminate) reciprocal tariffs on products of Japan that are natural resources unavailable (or unavailable at sufficient scale to satisfy domestic demand) in the U.S., generic pharmaceuticals, generic pharmaceutical ingredients, and generic pharmaceutical chemical precursors.
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