US Applies Baseline 15-Pct Tariff On Almost All Imports From Japan

(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, Sept 4 (KUNA) -- US President Donald J. Trump signed an Executive Order (EO) to implement a framework agreement with Japan (Agreement), which lays the foundation for a new era of bilateral trade relations "grounded in principles of reciprocity and our shared national interests." The Agreement, announced on July 22, 2025, establishes "a tariff framework that levels the playing field for American producers and accounts for American national security needs," according to the EO released by the White House on Thursday.
The Agreement is necessary and appropriate to address the national emergency declared in EO 14257 of April 2, 2025, -- and to reduce or eliminate the threats to national security --. The Agreement will reduce the United States trade deficit, boost the economy of the United States, and address the consequences of the United States trade deficit, including by strengthening the manufacturing and defense industrial base of the United States.
Under the Agreement, the United States will apply a baseline 15 percent 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. This new tariff framework, combined with expanded United States exports and investment-driven production, will help reduce the trade deficit with Japan and restore greater balance to the overall United States trade position.
Japan, meanwhile, will provide American manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods producers with breakthrough openings in market access across key sectors.
Specifically, the Government of Japan is working toward an expedited implementation of a 75 percent increase of United States rice procurements within the Minimum Access rice scheme and purchases of United States agricultural goods, including corn, soybeans, fertilizer, bioethanol (including for sustainable aviation fuel), as well as other United States products, in amounts totaling USD 8 billion per year.
The Government of Japan is also working to accept for sale in Japan United States-manufactured and United States-safety-certified passenger vehicles without additional testing. Separately, Japan will purchase United States-made commercial aircraft, as well as United States defense equipment.
Critically, unlike any other agreement in American history, the Government of Japan has agreed to invest USD 550 billion in the United States.
"These investments - which will be selected by the United States Government - will generate hundreds of thousands of United States jobs, expand domestic manufacturing, and secure American prosperity for generations," President Trump noted wrote in the EO.
"In my judgment, I determine that the following actions are consistent with the national interest of the United States and are necessary and appropriate to address the national emergency declared in Executive Order 14257, as amended, and to reduce or eliminate the threats to national security found in Proclamation 9704, as amended; Proclamation 9705, as amended; Proclamation 9888, as amended; and Proclamation 10962," he added. (end) rg

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