Trump signs executive order implementing US-Japan trade agreement, applies baseline tariff of 15 pc

WASHINGTON, DC: US President Donald Trump has signed an executive order officially putting into action the US-Japan trade agreement, the White House said on Thursday (US local time).

The trade agreement applies a baseline tariff of 15 per cent on nearly all Japanese imports entering the US, with the executive order mentioning that the Government of Japan has agreed to invest USD 550 billion in the United States.

The White House said in a post on X, “@POTUS has signed an Executive Order officially implementing the U.S.-Japan Trade Agreement.”

@POTUS has signed an Executive Order officially implementing the U.S.-Japan Trade Agreement. pic.twitter.com/BsmH1x2wGk

— The White House (@WhiteHouse) September 4, 2025

In an executive order, US President Donald Trump recalled the framework between the US and Japan announced in July earlier this year, which “lays the foundation for a new era of United States-Japan trade relations grounded in principles of reciprocity and our shared national interests”.

“Under the Agreement, the United States will apply a baseline 15 per cent tariff on nearly all Japanese imports entering the United States, alongside separate sector-specific treatment for automobiles and automobile parts; aerospace products; generic pharmaceuticals; and natural resources that are not naturally available or produced in the United States,” the White House said in a statement.

The order mentioned that Japan would also purchase US-made commercial aircraft, as well as United States defence equipment.

The order further noted that Japan would provide to the USA- manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods producers, “with breakthrough openings in market access across key sectors”.

Significantly, the statement mentioned that the Government of Japan is working toward an expedited implementation of a 75 per cent increase in United States rice procurements within the Minimum Access rice scheme and purchases of United States agricultural goods, including corn, soybeans, fertiliser, bioethanol, alongside other US products, totalling USD 8 billion per year.

“Critically, unlike any other agreement in American history, the Government of Japan has agreed to invest USD 550 billion in the United States”, the order mentioned.

It noted that the US Government would select the investments and would generate hundreds of jobs, expand domestic manufacturing.

The Executive Order, officially implemented by the US President, underlined that the Agreement establishes a tariff framework that levels the playing field for American producers, accounts for American national security needs, expands US exports and investment-driven production, and helps reduce the trade deficit with Japan.

The announcement comes shortly after Japan’s lead trade negotiator, Akazawa Ryosei, on Thursday left for a three-day trip to Washington for a new round of talks, NHK had reported. (ANI)