Trump places signature on decree for enactment of USA-Japan trade accord

Reduced tariff on Japanese automobiles from 27.5% to 15%

, and Administrator

2025 September 14 . 1:46 AM

2 min read

U.S. President Trump approves executive action for enacting U.S.-Japan trade pact

Trump places signature on decree for enactment of USA-Japan trade accord

The US-Japan trade agreement, announced on July 22 by President Donald Trump, aims to reshape bilateral trade and restore balance to the US trade position. The executive order, published by the White House, implements this agreement.

Under the terms of the agreement, tariffs on many other goods from Japan will be capped at 15%. This includes a reduction in the tariff on Japanese autos, which will drop from the current 27.5% to 15%.

The agreement provides reciprocal economic benefits, with Japan committing to increased market access for American manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods producers. This includes a pledge to increase rice imports under its Minimum Access rice scheme, and a commitment to annual purchases of American corn, soybeans, fertiliser, and bioethanol, worth approximately $8 billion.

Japan has also agreed to invest $550 billion in the US. In return, the US will apply a 15% tariff on nearly all Japanese imports, with separate sector-specific treatment for automobiles and automobile parts, aerospace products, generic pharmaceuticals, and natural resources.

The new tariff framework, combined with expanded US exports and investment-driven production, is aimed at reducing the trade deficit with Japan. The agreement also includes a provision for Japanese-made passenger vehicles to be sold in the US without additional testing, as long as they are US-manufactured and US-safety-certified.

Japan is working toward a 75% increase of US rice procurements and purchases of US agricultural goods in amounts totaling $8 billion per year. This is part of a broader effort to increase US exports and investment-driven production, which are expected to help in reducing the trade deficit with Japan and restoring balance to the US trade position.

The framework agreement between the US and Japan is grounded in principles of reciprocity and shared national interests. The search results do not contain information about any companies offering 8% CD rates specifically for seniors.