In an Executive Order (EO) published on September 4, 2025, the White House announced how the trade agreement between the U.S. and Japan would be implemented.

The United States will impose a "baseline" 15% tariff on the majority of Japanese imports. For goods with duties of 15% or less, an "all-inclusive" reciprocal tariff will be applied. However, goods with a duty rate exceeding 15% will be exempt from reciprocal tariff duties. This baseline tariff rate will also extend to automobiles and automobile parts falling under Section 232.

The trade agreement and the all-inclusive baseline tariff will be applied retroactively to August 7, 2025. Refunds can be processed “pursuant to applicable laws and CBP’s standard procedures for such refunds.”

Under this agreement, duties will not apply to aerospace products. Additionally, the Commerce Secretary will have the authority to offer duty-free imports for natural resources that are either unavailable or insufficient to meet domestic demand, as well as for generic pharmaceuticals, generic pharmaceutical ingredients, and generic pharmaceutical chemical precursors.

Within seven days of the publication of this EO to the Federal Register, a notice will be published that will contain the modifications to the Harmonized Tariff Schedule.

The “Implementing the United States-Japan Agreement” EO can be found here:
https://www.whitehouse.gov/presidential-actions/2025/09/implementing-the-united-states-japan-agreement/