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U.S.–Japan Trade Agreement Implemented – New 15% Tariff Framework


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On September 4, 2025, the President signed Executive Order 14345, officially implementing the U.S.–Japan Trade Agreement. The order was published in the Federal Register on September 9, 2025 under document number 2025-17389.

This agreement establishes a baseline 15% ad valorem tariff on nearly all imports from Japan, while creating new opportunities for U.S. exporters and investors. Below are the key details you must know to stay compliant and strategically positioned:

 

Key Provisions

  • Baseline Tariff:

    • A 15% ad valorem duty will now apply to most Japanese-origin goods, unless explicitly excluded under the terms of the agreement. If the general rate is less than 15%, the ad valorem will be the difference so that the sum of the standard rate of duty and the additional ad valorem rate equal 15%. For a product that has a higher general duty rate above 15%, the additional reciprocal rate of duty shall be 0%

  • Effective Date:

    • The provisions are retroactive to August 7, 2025, meaning entries filed on or after this date will be subject to the new framework.

    • CBP will issue guidance regarding duty adjustments and refund claims for entries submitted between August 7 – September 9, 2025.

  • HTS Classification:

    • The primary classification for these duties is HTSUS Subheading 9903.92.15.

    • This heading must be listed in addition to the base HTS number for the product.

    • Example format: 9903.92.15 / 8703.23.0054 (passenger vehicle).

  • Exclusions:


    Certain goods are fully exempt or subject to alternative treatment:

  • U.S.-origin goods returning without advancement or improvement (HTS Chapter 98 provisions).

  • Humanitarian aid (food, medicine, critical supplies).

  • Goods explicitly listed in Annex II of the agreement, including some aerospace and defense products.

  • Limited-scope exclusions granted by CBP via Post Summary Correction or protest.

 

Strategic Benefits

Japan has committed $550 billion in investments, loans, and guarantees toward U.S. infrastructure, defense, and agriculture sectors, further strengthening the bilateral partnership. This creates new trade and procurement opportunities for U.S. exporters and service providers.

 

Action Steps for Importers

  1. Review current supply chains to confirm correct HTS classifications for all Japanese-origin goods.

  2. Update entry filings to include 9903.92.15 where applicable.

  3. Evaluate eligibility for exclusions under Annex II or Chapter 98 provisions.

  4. Contact our team for Post Summary Corrections or refund requests for retroactive adjustments.

 

For questions or detailed compliance guidance, please reach out to:

Richard G. Fleischer Customs Brokers

132 W 132nd St., Los Angeles, CA 90061

Phone: 310.671.6402

 
 
 

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