President Trump Signs Executive Order Formalizing United States-Japan Trade Deal
President Donald Trump (R) signed an Executive Order (EO) on 4 September 2025 to implement the trade deal between the United States and Japan previously announced this summer (seeUnited States Drops Japan Tariff to 15% in 'Largest Ever' Trade Deal (23 July 2025)).
The order confirms the headline tariff rate of 15% on Japanese goods entering the United States. The baseline 15% rate replaces the 35% rate that was included in the President's "Liberation Day" tariffs from April. The new tariff rates apply retroactively to goods entering on or after 7 August 2025.
In addition to the general tariff rate, the order addresses several specific issues. The order eliminates tariffs on civilian aerospace goods. Specifically, the order eliminates tariffs on aluminum, copper, and steel levied under prior Executive Orders as well as the reciprocal tariff order from April 2025. Automobiles and automotive parts will also be relieved of additional tariffs (beyond the 15% base rate).
According to the White House Factsheet released on 5 September 2025, Japan has agreed to expand imports of US agricultural and energy products and relax rules on US automotive imports, including emissions certification requirements.
The EO and Factsheet explicitly confirm Japan's commitment to invest USD 550 billion in US projects selected by President Trump, including semiconductors, pharmaceuticals, metals, critical minerals, shipbuilding, energy (including pipelines), and artificial intelligence/quantum computing. These investments are targeted at critical industries of national and economic security and are expected to create hundreds of thousands of US jobs. They also affirm Japan's side of the deal, including expanded agricultural imports (e.g. rice, corn, soybeans, fertilizer, bioethanol) and acceptance of US-certified vehicles without additional emissions testing. According to the Factsheet, Japan will also provide Clean Energy Vehicle Introduction Promotion Subsidies for American cars.
The agreement includes joint commitments to enhance supply chain resilience, combat duty evasion, and coordinate export controls and investment security.
More information relating to tariff measures can be found on IBFD's International Guide on Global Trade.