Trump Signs U.S.–Japan Trade Order: Up to 15% Tariffs on Most Japanese Imports Including Autos and Parts

On September 4, President Trump formally signed an executive order to implement the U.S.–Japan trade agreement, setting a benchmark tariff of 15% on nearly all Japanese goods entering the United States. According to a statement released by the White House, products already subject to higher tariffs will not face double taxation, while those previously taxed below 15% will be adjusted to the new rate.

The agreement also outlines sector-specific provisions for automobiles, auto components, aerospace goods, generic pharmaceuticals, and natural resources that are not naturally available or produced within the U.S.

Although the deal was reached in July, negotiations over specific terms continued until recently. Following the announcement, the U.S. dollar held a 0.3% intraday gain against the yen, trading at 148.50. Japan has actively pushed for the agreement’s finalization in recent weeks. As part of its commitment, Japan agreed to establish a USD 550 billion investment fund dedicated to U.S.-based projects, though details regarding allocation and timeline remain pending.

Under the terms of the agreement, Japan will open key market segments to U.S. manufacturers across industries including aerospace, agriculture, food, energy, automotive, and industrial goods. The Japanese government also pledged to allow U.S.-certified passenger vehicles to be sold domestically without additional testing, and to purchase American-made commercial aircraft and defense equipment.

Additionally, Japan will accelerate its “minimum access” rice program, increasing procurement of U.S. rice by 75%, and commit to purchasing USD 8 billion annually in American agricultural products such as corn, soybeans, fertilizers, and bioethanol. The signing of this agreement concludes prolonged bilateral negotiations and establishes a new framework for trade relations between the United States and Japan.