New Tariff Requirement Fact Sheet
August 26, 2025Trump Administration Executive Order Outlines Tariff Implementation for U.S.-Japan Trade Deal
President Trump on Thursday evening, Sept. 4, signed an Executive Order to implement a trade agreement recent reached between the U.S. and Japan.
Under the Agreement, the U.S. will apply a baseline 15% tariff on nearly all Japanese imports entering the U.S., alongside separate sector-specific treatment for automobiles and automobile parts; aerospace products; generic pharmaceuticals; and natural resources that are not naturally available or produced in the U.S., the EO said.
Some specific details within the EO regarding U.S. tariffs on Japanese products include:
- The additional ad valorem rate of duty applicable to products of Japan shall be determined by a product’s current ad valorem (or ad valorem equivalent) rate of duty under column 1 of the HTSUS (“Column 1 Duty Rate”). For a product of Japan with a Column 1 Duty Rate in the HTSUS that is less than 15%, the sum of its Column 1 Duty Rate and the additional ad valorem rate of duty pursuant to this order shall be 15%. For a product of Japan with a Column 1 Duty Rate that is at least 15%, the additional rate of duty pursuant to this order shall be zero percent. Treatment of specific or compound duty rates shall be identical to the treatment provided to products of the European Union as outlined in Executive Order 14326 of July 31, 2025 (Further Modifying the Reciprocal Tariff Rates). The duties described in this subsection shall apply in lieu of the additional ad valorem duties previously imposed on products of Japan under Executive Order 14257, as amended.
- The tariffs set forth in subsection (a) of this section of the EO shall apply retroactively to products of Japan entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on Aug. 7, 2025. Any refunds shall be processed pursuant to applicable laws and Customs and Border Protection (CBP) standard procedures for such refunds.
- The Commerce Secretary may issue rules, regulations, guidance, and procedures to carry out the provisions of this section, including rules for determining what are “products of Japan” for purposes of this EO.
Within seven days of this EO’s publication, the Commerce Secretary, in consultation with the International Trade Commission Chair and CBP Commissioner, will publish a notice in the Federal Register modifying the HTSUS consistent with this section.
The NCBFAA Customs Committee and Counsel of Sandler, Travis & Rosenberg, P.A., will monitor this Executive Order, as well as follow-on CBP guidance, and present this information to our members as received.