Overview

• The White House filed a Supreme Court appeal on Sept. 3 challenging an appeals court decision that found IEEPA does not authorize the president to impose reciprocal tariffs, keeping the duties in place pending review.
• A presidential order signed Sept. 4 lowers the U.S. tariff on Japanese auto imports from 27.5% to 15%, with application expected during September after Federal Register publication and a short lead time.
• The order promises retroactive refunds of over-collected duties for Japan and caps the reciprocal tariff burden at 15%, with no additional increase where existing U.S. rates already exceed that level.
• A U.S.–Japan statement grants most-favored-nation treatment for semiconductors and medicines and confirms no tariffs on Japanese aircraft or aircraft parts.
• President Trump warned that losing at the Supreme Court could prompt unwinding trade deals with Japan, the EU and South Korea, while Prime Minister Shigeru Ishiba pressed for faithful, prompt implementation and said his tenure plans are unchanged.