Trade Agreement between the US and Japan
The Trump Administration has issued an Executive Order confirming a deal between the US and Japan has been completed. The structure is very similar to the deal between the US and the EU in that there will be a baseline rate of 15% applicable to nearly all imports coming from Japan. Here are the details:
- If a Japanese product’s current US duty rate (Column 1 in the HTSUS) is below 15%, the rate will be increased to 15% total
- If the product’s current duty rate is 15% or higher, no extra duty will be added
- These rules replace the previous extra duties on Japanese products from Executive Order 14257
There are separate arrangements in place for vehicles and vehicle parts, certain pharmaceuticals, aerospace parts, and some natural resources with additional information available in the Executive Order.
Subsection ‘2d’ of the Executive Order states that the tariffs set forth in subsection ‘a’ shall apply retroactively to products of Japan entered for consumption or withdrawn from warehouse for consumption on or after 12:01 am ET on August 7th, 2025, meaning refunds may be due on some products. Refunds will be processed pursuant to applicable laws and Customs and Border Protection’s standard refund procedures.
Executive Order Modifies Scope of Reciprocal Tariffs – Effective September 8th
On Friday, September 5th, President Trump issued a new Executive Order that modifies the scope of the Annex II list of reciprocal tariffs. The addition of goods to Annex II means they will no longer be subject to reciprocal tariffs. The list of added goods includes:
- Bullion-related articles
- Certain critical minerals
- Pharmaceutical products subject to pending Section 232 investigations
Other goods have been removed from Annex II – they are now subject to reciprocal tariffs. These goods include
- Certain aluminum hydroxide products
- Some resin items
- Some silicone products
The modified Annex II is available here and the changes took effect from 12:01am ET on Monday, September 8th, 2025.
USTR Extends Certain Exclusions from China Section 301 Tariffs to November 29th
The Office of the US Trade Representative (USTR) has announced an extension of certain Section 301 tariff exclusions on Chinese imports. Originally set to expire on August 31st, these exclusions will now remain in place until November 29th, 2025. The extension applies to178 product categories, including industrial goods, solar manufacturing equipment, and select consumer products. Importers that qualify under these exclusions will continue to benefit from relief on additional duties for the next three months. The list of product headings affected by this update can be found in Annexes A and B on the FRN here.
