Overview

• Tariffs on Japanese automobiles and parts drop from 27.5% to 15%, with the auto relief to be implemented within seven days of Federal Register publication.
• The 15% cap applies retroactively to entries from Aug. 7 and includes anti‑stacking rules that set total duties at 15% or zero additional reciprocal tariff when existing rates are at least 15%, with excess duties slated for refund.
• Commerce Secretary Howard Lutnick and Japan’s Ryosei Akazawa signed memorandums of understanding, and the order authorizes carve‑outs including aircraft and parts, generic pharmaceuticals, and certain natural resources.
• Japan reaffirmed a $550 billion investment pledge in U.S.-selected projects, but the structure, timeline, and oversight remain unclear; a reported 45‑day commitment deadline comes from an unpublished memo and is not corroborated in official texts.
• Japan will expand access for U.S. goods, including a 75% increase in rice procurements and roughly $8 billion a year in agricultural purchases, and Japanese equities gained on the signing.