On September 4, 2025, the White House issued an Executive Order providing further details of the U.S. - Japan Agreement originally announced on July 22. These changes will take effect upon publication in the Federal Register (expected within 7 days) and apply retroactively to entries from August 7, 2025.
Key details of this agreement include:
- Baseline Tariff: All Japanese imports will be subject to a 15% ad valorem duty.
- If the current duty is less than 15%, the difference will be added.
- If the duty is 15% or more, no additional duty will apply.
- Automobiles and Automobile Parts: The same 15% rule applies. This is a reduction from the previous 27.5% rate.
- Aerospace Products: Items under the Civil Aircraft provision are exempt from duty.
- Special Zero-Duty Categories:
- Natural resources unavailable or insufficiently available in the U.S.
- Generic pharmaceuticals, their ingredients, and chemical precursors.
- Further clarification from Commerce is expected.
- Specific/Compound Duties: Will follow the same treatment as outlined in Executive Order 14326 (EU Agreement) in Annex II.
CBP Guidance: U.S. Customs and Border Protection will issue implementation instructions shortly.
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