On September 4, 2025, President Trump issued an executive order implementing a trade agreement between the United States and Japan. Under this order, almost all Japanese imports will now face a baseline 15 percent tariff. The applicable rate of duty will be calculated based on the product’s existing Column 1 rate under the Harmonized Tariff Schedule. For products with a current duty rate below 15 percent, an additional duty will be applied so that the total rate equals 15 percent. For products already subject to a duty rate of 15 percent or higher, no additional duty will apply. Treatment of specific or compound duty rates shall be identical to the treatment provided to products of the European Union as outlined in a previous order.
The tariffs apply retroactively to Japanese goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. EST on August 7, 2025. Importers with eligible entries may claim refunds through the normal CBP process. However, CBP has instructed the trade community not to file PSCs or protests until they issue specific instructions on how refund requests are to be submitted. Further guidance will be provided through CSMS messages once those procedures are established.
Automobiles and parts of Japan are no longer subject to Section 232 duties, but instead will follow the new 15 percent tariff framework listed in this order. Aerospace products covered under the WTO Agreement on Trade in Civil Aircraft, except for unmanned aircraft, are exempt from previously imposed presidential tariffs. In addition, reciprocal tariffs imposed under Executive Order 14257 are reduced to zero for specified Japanese goods, including natural resources unavailable (or not available at sufficient scale to satisfy domestic demand) in the United States, as well as generic pharmaceuticals, pharmaceutical ingredients, and their chemical precursors.
To implement these changes, the Secretary, in consultation with the ITC and CBP, will publish modifications to the HTSUS in the Federal Register within seven days of the order’s publication.
The full details of the order can be found at the following links: Implementing the United States–Japan Agreement
Fact Sheet: President Donald J. Trump Implements a Historic U.S.–Japan Framework Agreement