Implementing Some Tariff-Related Elements of the U.S.-Japan Agreement

Sep. 15, 2025
By: Pietro N. Bianchi

In line with President Trump’s executive order, the Department of Commerce issued a notice implementing some of the tariff elements outlined in U.S.-Japan trade talks earlier this year. Starting on September 16, 2025, certain aerospace products of Japan listed in Annex I of the notice will be excluded from International Emergency Economic Powers Act of 1977 (IEEPA) trade deficit tariffs and Section 232 tariffs on iron or steel, aluminum, and copper. Also starting September 16, 2025, certain, cars, trucks, and auto parts of Japan will be assessed no IEEPA trade deficit or Section 232 automotive tariff if the Most Favored Nation (“MFN”) or “base” tariff rate is equal to or greater than 15 percent; and a Section 232 tariff of 15 percent minus the MFN tariff rate if the MFN tariff rate is less than 15 percent. Retroactive to August 7, 2025, goods of Japan subject to IEEPA trade deficit tariffs will be excluded if the MFN tariff rate is equal to or greater than 15 percent and assessed an IEEPA trade deficit tariff of 15 percent minus the MFN tariff rate if the MFN tariff rate is less than 15 percent.

These exclusions/rates can be claimed by reporting the following on entry:

Notably, tariff reductions on natural resources and generic pharmaceuticals, pharmaceutical ingredients, and pharmaceutical chemical precursors of Japan outlined in U.S.-Japan trade talks and the President’s recent executive order were not a part of the scheduled changes. If you have questions about trade remedies or tariffs in general, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.