September 5th, the President signed an Executive Order implementing the U.S. – Japan trade agreement.  You can read it here.

The salient features of the agreement include the following:

• The reciprocal tariff rate for Japan is 15%. In addition, the agreement has a mechanism similar to that in the US-European Union trade deal – if the regular HTSUS duty is less than 15%, the total reciprocal tariff and HTSUS duty is 15%; and if the regular HTSUS duty is greater than 15%, the total duty is the HTSUS duty and the reciprocal tariff rate is 0%.

• The above provision will apply retroactively to imports from Japan which were entered on or after August 7, 2025, and U.S. Customs and Border Protection (CBP) will process any refunds that may be due.

• The Section 232 tariff on automobiles and automobile parts from Japan will be 15%. As with the reciprocal tariff, if the regular HTSUS duty is less than 15%, the total Section 232 tariff and HTSUS duty is 15%. If the regular HTSUS duty is greater than 15%, the total duty is the HTSUS duty only, and the Section 232 tariff rate is 0%.

• The Executive Order authorizes the Commerce Department to modify the reciprocal tariff rate to 0.00% for products of Japan which are (a) natural resources unavailable (or unavailable at sufficient scale to satisfy domestic demand) in the United States, (b) generic pharmaceuticals, (c) generic pharmaceutical ingredients, and (d) generic pharmaceutical chemical precursors.

• Imports of aerospace products of Japan will not be subject to the reciprocal tariff or the Section 232 tariffs on steel and aluminum. This change will become effective 7 days after the publication date of the Executive Order in the Federal Register.

• The Executive Order does not mention the Section 232 tariff of 50% on steel, aluminum, or copper products from Japan.

We are monitoring this and will provide more information as it becomes available.