Trade
Implementing The United States–japan Agreement
The order implements a U.S.-Japan trade agreement with a generally 15% tariff floor on Japanese imports and special treatment for key products.
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The tariff framework aims to reduce the U.S. trade deficit, expand market access for American producers, and strengthen domestic manufacturing and defense industries. Japan also committed to $550 billion in U.S. investment and increased purchases of American goods.
What the order does
- Sets combined standard and additional tariffs at 15% for most Japanese imports currently taxed below 15%, while adding no tariff to goods already taxed at 15% or more.
- Applies the new tariff framework retroactively to qualifying Japanese goods entered on or after August 7, 2025, with refunds handled through standard customs procedures.
- Removes specified tariffs from qualifying Japanese civil aircraft products, excluding unmanned aircraft.
- Replaces existing automobile and auto-parts tariffs with a combined 15% tariff floor for covered Japanese vehicles and parts.
- Authorizes zero reciprocal tariffs for certain unavailable natural resources and generic pharmaceutical products and inputs.
- Directs federal officials to revise the tariff schedule, issue implementing rules, and monitor Japan’s compliance with its commitments.
- Allows the President to modify the order if Japan does not implement its commitments.
Who it affects
- U.S. importers and purchasers of Japanese goods, including automobiles, auto parts, aircraft products, pharmaceuticals, and natural resources.
- American manufacturing, aerospace, agriculture, food, energy, automobile, industrial, and defense producers seeking greater access to Japan.
- Japanese exporters and companies investing in or selling products to the United States.
- Federal trade, commerce, customs, and tariff-administration agencies.