Overview

• An executive order establishes a 15% baseline on nearly all Japanese imports and lowers the U.S. auto tariff on Japanese vehicles and parts from 27.5% to 15%.
• Lower auto duties will take effect after Federal Register publication, with some relief retroactive to Aug. 7 and reporting indicating the reduced rate could apply by late September.
• The order prevents tariff stacking by lifting items below 15% up to that level and applying a zero reciprocal rate where existing duties are already at least 15%.
• Sector-specific provisions cover automobiles and parts, aerospace products, generic pharmaceuticals, and certain natural resources, with authority to drop some reciprocal rates to zero.
• The deal records Japan’s plan to invest $550 billion in the U.S. and to raise purchases of American farm goods to about $8 billion annually, including a 75% increase in rice, following negotiator Ryosei Akazawa’s trip to Washington.