Order sets tariff rules for imports from Japan

The order sets the combined regular and additional tariff on most Japanese imports at 15 percent when the regular tariff is below 15 percent, and adds no extra tariff when it is 15 percent or higher. This covers products of Japan, except products receiving special treatment under the order. Existing rules from Executive Order 14257 continue unless this order changes them. Commerce may issue rules and guidance, including rules for deciding whether goods are products of Japan. Any refunds must follow applicable law and Customs and Border Protection procedures. The tariff calculation applies retroactively to Japanese products entered for consumption or removed from a warehouse on or after August 7, 2025, at 12:01 a.m. Eastern daylight time.

The order removes specified earlier tariffs on covered Japanese civilian aerospace goods and sets the combined tariff on covered Japanese automobiles and auto parts at 15 percent when the regular tariff is lower. Aerospace treatment covers products under the World Trade Organization civil-aircraft agreement, but not unmanned aircraft. Automobile treatment covers Japanese automobiles and auto parts already subject to the cited vehicle tariffs. The aerospace change takes effect through a Commerce notice modifying the tariff schedule. Commerce must consult with the International Trade Commission and Customs and Border Protection before publishing the notices. The order allows agencies to issue rules and guidance to identify covered Japanese products. Commerce must publish the required tariff-schedule notices within 7 days after the order’s Federal Register publication. The changes begin on the date of the applicable notice.

Commerce may set the reciprocal tariff to zero for certain natural resources and generic pharmaceutical products, while monitoring Japan’s implementation and reporting to the President. Eligible goods include natural resources unavailable, or unavailable in sufficient scale, in the United States, plus generic drugs and specified generic-drug inputs. Commerce must consider U.S. and Japanese commitments, Japan’s actions, national interests, and national-security concerns when deciding whether to set a zero rate. The President may modify the order if Japan fails to carry out its commitments. Implementation remains subject to applicable law and available appropriations. The zero-rate changes may occur when Commerce makes them. Monitoring and updates continue from time to time, with no end date stated in the order.