Overview

• Japan’s chief negotiator Ryosei Akazawa secured an agreement that any pre-existing tariffs above 15% will be exempt from the new reciprocal rate
• The White House pledged to amend its July 31 executive order and issue retroactive refunds for any overlapping levies already collected
• A follow-up order will cut US auto tariffs on Japanese imports from 27.5% to 15%, though no timeline for implementation has been announced
• Treasury Secretary Scott Bessent said the deal will undergo quarterly reviews and warned that failure to meet targets could trigger a return to 25% tariffs
• The dispute has exposed fraying trust in the US-Japan alliance and intensified criticism of Prime Minister Ishiba’s handling of the opaque agreement