By Rita Cook
Correspondent
Texas Metro News
tarrifs to Japan to 15%
WASHINGTON, DC – Bringing the tariff conversation back in the news last week, President Trump signed an Executive Order implementing a U.S.-Japan trade agreement.
“Under the Agreement, the United States will apply a baseline 15 percent tariff on nearly all Japanese imports entering the United States, alongside separate sector-specific treatment for automobiles and automobile parts; aerospace products; generic pharmaceuticals; and natural resources that are not naturally available or produced in the United States,” the EO read.
The order indicated the United States will reduce its tariff on automobiles from Japan to 15 percent from the current rate of 27.5 percent, in line with the trade agreement.
While the EO was signed last week the date of implementation is still unclear according to Japan’s top tariff negotiator Ryosei Akazawa.
Akazawa told reporters “it shouldn’t take two weeks from now.”
The order read that in Trump’s judgement when signing the EO he believed the agreement was necessary and appropriate.
He added that he believes this order will address the national emergency he had previously declared from an April 2025 EO “Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits.”
He also cited previous proclamations as part of the bigger picture of the EO with Japan. The proclamations included “Adjusting Imports of Steel Into the United States,” “Adjusting Imports of Automobiles and Automobile Parts Into the United States” and “Adjusting Imports of Copper Into the United States.”
The EO indicated “The Agreement will reduce the United States trade deficit, boost the economy of the United States, and address the consequences of the United States trade deficit, including by strengthening the manufacturing and defense industrial base of the United States.”
The EO also calls for special treatment on US “reciprocal” duties, as agreed in the July 22 bilateral deal. Imports from Japan with preexisting tariffs of 15 percent or higher will not face additional levy, and duties on other items will be capped at 15 percent.
In exchange the United States will receive Japan’s promise to heavily invest during Trump’s second term.
To that end, Akazawa signed a memorandum of understanding with the United States regarding Japan’s planned “strategic investments” as promised.
Japan will invest up to $550 billion in the United States. According to Japanese officials this will come in the way of investments, loans, and loan guarantees from government-backed financial institutions.
Both the US and Japan believe an essential focus for both countries will be looking at critical minerals, semiconductors, and pharmaceuticals.
The EO also outlined Japan will provide American manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods producers with breakthrough openings in market access across key sectors.
US Commerce Secretary Howard Lutnick said overall Japan plans to $550 billion into the United States. He explained President Trump has “complete discretion” on where the money will go, but he also commented, “This is historic. We will create an extraordinary partnership going forward.”
traveler and writer/editor who specializes in writing on travel, auto, crime and politics. A correspondent for Texas Metro News, she has published 11 books and has also produced low-budget films.
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