• Japan – Pay 15% Tariff on imports to USA, auto, aerospace, pharma & natural resources 
• Must invest $550 Bn into USA, selected by USA government to generate USA jobs and manufacturing  
• Provide American manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods producers 
• 75 % increase of USA rice within the Minimum Access rice scheme & purchases of USA agricultural goods including, corn, soybeans, fertilizer, bioethanol (including for sustainable aviation fuel), in amounts totaling $8 billion per year. 
• Must accept USA made vehicles, aircraft & defense equipment 

 

Authority and Background 

“By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), and section 301 of title 3, United States Code, I hereby determine and order the following actions to implement a new trade agreement with Japan” Trump.

“On July 22, 2025, I announced a framework agreement between the United States and Japan (Agreement), which establishes a foundation for a new era of United States-Japan trade relations grounded in principles of reciprocity and shared national interests. The Agreement creates a tariff framework that levels the playing field for American producers while addressing American national security needs. In my judgment, this Agreement is necessary and appropriate to address the national emergency declared in Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits), as amended, and to reduce or eliminate threats to national security identified in Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), as amended; Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), as amended; Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended; and Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States). The Agreement aims to reduce the United States trade deficit, boost the U.S. economy, and strengthen the manufacturing and defense industrial base of the United States. “

The Agreement introduces a baseline 15 percent tariff on nearly all Japanese imports entering the United States, with separate sector-specific treatment for automobiles and automobile parts, aerospace products, generic pharmaceuticals, and natural resources that are not naturally available or produced in the United States. This tariff framework, combined with expanded U.S. exports and investment-driven production, will help reduce the trade deficit with Japan and restore greater balance to the overall U.S. trade position. 

Japan’s Commitments Under the Agreement 

Japan has committed to providing American manufacturers, aerospace, agriculture, food, energy, automobile, and industrial goods producers with breakthrough openings in market access across key sectors. Specifically, the Government of Japan is working toward an expedited implementation of a 75 percent increase in United States rice procurements within the Minimum Access rice scheme and purchases of U.S. agricultural goods, including corn, soybeans, fertilizer, bioethanol (including for sustainable aviation fuel), and other U.S. products, totaling $8 billion per year. Additionally, Japan is working to accept for sale in Japan United States-manufactured and United States-safety-certified passenger vehicles without additional testing. Japan will also purchase U.S.-made commercial aircraft and U.S. defense equipment. 

Critically, unlike any other agreement in American history, the Government of Japan has agreed to invest $550 billion in the United States. These investments, which will be selected by the United States Government, are expected to generate hundreds of thousands of U.S. jobs, expand domestic manufacturing, and secure American prosperity for generations. 

Tariff Implementation 

General Tariffs 

The additional ad valorem rate of duty applicable to products of Japan shall be determined by a product’s current ad valorem (or ad valorem equivalent) rate of duty under column 1 of the Harmonized Tariff Schedule of the United States (HTSUS) (“Column 1 Duty Rate”). For a product of Japan with a Column 1 Duty Rate in the HTSUS that is less than 15 percent, the sum of its Column 1 Duty Rate and the additional ad valorem rate of duty pursuant to this order shall be 15 percent. For a product of Japan with a Column 1 Duty Rate that is at least 15 percent, the additional rate of duty pursuant to this order shall be zero percent. Treatment of specific or compound duty rates shall be identical to the treatment provided to products of the European Union as outlined in Executive Order 14326 of July 31, 2025 (Further Modifying the Reciprocal Tariff Rates). The duties described in this subsection shall apply in lieu of the additional ad valorem duties previously imposed on products of Japan under Executive Order 14257, as amended. 

Except as specified, the terms of Executive Order 14257, as amended, shall continue to apply to products of Japan. The Secretary of Commerce, in consultation with the United States Trade Representative, the Secretary of Homeland Security (acting through the Commissioner of U.S. Customs and Border Protection), and the Chair of the United States International Trade Commission (ITC), shall determine whether modifications to the HTSUS are necessary or appropriate to effectuate this order and may make such modifications through notice in the Federal Register. These tariffs shall apply retroactively to products of Japan entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on August 7, 2025. Any refunds shall be processed pursuant to applicable laws and CBP’s standard procedures. 

The Secretary of Commerce may issue rules, regulations, guidance, and procedures to carry out these provisions, including rules for determining what constitutes “products of Japan.” 

Aerospace Products 

For products of Japan that fall under the World Trade Organization Agreement on Trade in Civil Aircraft, except for unmanned aircraft, the tariffs imposed through Executive Order 14257, Proclamation 9704, Proclamation 9705, and Proclamation 10962, as amended, shall no longer apply as of the date of publication of the Federal Register notice. Within 7 days of the publication of this order in the Federal Register, the Secretary of Commerce, in consultation with the Chair of the ITC and the Commissioner of CBP, shall publish a notice in the Federal Register modifying the HTSUS accordingly. The Secretary may issue rules, regulations, guidance, and procedures to determine what constitutes “products of Japan” for these purposes. 

Automobiles and Automobile Parts 

As of the date of publication of the Federal Register notice, in lieu of the additional section 232 ad valorem duties imposed on products of Japan in Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States), as amended, the additional ad valorem rate of duty applicable to an automobile or automobile part that is a product of Japan and subject to duties under Proclamation 10908 shall be determined by the product’s Column 1 Duty Rate. For a product with a Column 1 Duty Rate less than 15 percent, the sum of its Column 1 Duty Rate and the additional automobile or automobile part section 232 ad valorem rate of duty shall be 15 percent. For a product with a Column 1 Duty Rate of at least 15 percent, the additional rate of duty imposed shall be zero percent. Within 7 days of the publication of this order in the Federal Register, the Secretary shall publish a notice modifying the HTSUS accordingly. The Secretary may issue rules, regulations, guidance, and procedures to determine whether automobiles and automobile parts are “products of Japan.” 

Products Exempt from Reciprocal Tariffs 

To implement the terms of the Agreement, the Secretary of Commerce is authorized to modify the reciprocal tariff rate imposed under Executive Order 14257, as amended, to zero percent for products of Japan that are natural resources unavailable (or unavailable at sufficient scale to satisfy domestic demand) in the United States, generic pharmaceuticals, generic pharmaceutical ingredients, and generic pharmaceutical chemical precursors. In determining when and for which products to modify the tariff rate to zero percent, the Secretary shall act consistently with U.S. national interests, the purposes of this order, the national emergency declared in Executive Order 14257, and the need to reduce or eliminate national security threats identified under section 232. The Secretary shall also consider the scope and nature of Japan’s commitments under the Agreement, the U.S. commitments under the Agreement, and the actions taken by both governments to implement those commitments. 

Monitoring and Modifications 

The Secretary of Commerce shall monitor Japan’s implementation of its commitments under the Agreement and provide periodic updates on its status. Should Japan fail to implement its commitments, I may modify this order as necessary to address the national emergency declared in Executive Order 14257, as amended, and to reduce or eliminate the threats to national security found in Proclamation 9704, Proclamation 9705, Proclamation 9888, and Proclamation 10962, as amended. 

Delegation of Authority 

The Secretary of Commerce and the Secretary of Homeland Security are directed and authorized, consistent with applicable law, to take all necessary actions to implement and effectuate this order, including through temporary suspension or amendment of regulations, notices in the Federal Register, or adopting rules, regulations, or guidance. They may employ all powers granted to the President, including those under IEEPA and section 232. The Secretary of Homeland Security, in consultation with the Chair of the ITC, shall determine whether additional modifications to the HTSUS are necessary and may make such modifications through notice in the Federal Register. Both Secretaries may redelegate these functions within their respective departments or agencies, consistent with applicable law. All executive departments and agencies shall take appropriate measures within their authority to implement this order. 

Interaction with Other Presidential Actions 

Any provision of previous proclamations and Executive Orders that is inconsistent with the actions directed in this order is superseded to the extent of such inconsistency. 

General Provisions 

Nothing in this order shall be construed to impair or otherwise affect the authority granted by law to an executive department or agency, or the head thereof, or the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals. This order shall be implemented consistent with applicable law and subject to the availability of appropriations. This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. The costs for publication of this order shall be borne by the Department of Commerce. 

Sources 

• https://www.whitehouse.gov/presidential-actions/2025/09/implementing-the-united-states-japan-agreement/ 
• Executive Order 14257 of April 2, 2025 (Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits) 
• Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States) 
• Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States) 
• Proclamation 9888 of May 17, 2019 (Adjusting Imports of Automobiles and Automobile Parts Into the United States) 
• Proclamation 10962 of July 30, 2025 (Adjusting Imports of Copper Into the United States) 
• Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States) 
• Executive Order 14326 of July 31, 2025 (Further Modifying the Reciprocal Tariff Rates) 
• https://pixabay.com/photos/tokyo-tower-tokyo-tower-japan-5664836/ 

Author: Ryan Bridglal

#featured #bridgenewzcom #bridgenewz #breakingnews #breaking #news #businessnews #trump #donaldtrump #executiveorder #executive #order #finance #finance #law #funding #japan #tariff #dod #deptofwar #defense