President Donald Trump signed an executive order on September 4 implementing a sweeping new trade agreement with Japan. The deal establishes a baseline 15% tariff on most Japanese imports while securing $550 billion in Japanese investments across U.S.-selected projects.
The order replaces all previous U.S.-Japan trade measures. Trump called it “a new era of United States-Japan trade relations grounded in principles of reciprocity and our shared national interests.”
The executive order describes the agreement as a dramatic shift in U.S.-Japan economic relations, combining protectionist tariffs with unprecedented foreign investment. It combines protectionist tariffs with unprecedented investment commitments. The order states that the deal will create hundreds of thousands of American jobs.
According to the order, Japan will invest $550 billion in U.S. projects selected by the American government. The Japanese government also committed to purchasing $8 billion annually in U.S. agricultural products, including rice, corn, soybeans, and bioethanol.
The 15% baseline tariff applies to nearly all Japanese imports, with exemptions for aerospace products, generic pharmaceuticals, and critical natural resources not available domestically.
Autos and auto parts face the full 15% rate. Items already facing higher tariffs will retain their current rates without additional increases.
The order specifies that Japan will accept U.S.-manufactured vehicles certified for American safety standards without additional testing. Japan also agreed to purchase American commercial aircraft and defense equipment.
Trump justified the measures in the order as necessary to address national security threats and reduce the U.S. trade deficit. The order implements a framework agreement announced July 22.
The tariffs apply retroactively to Japanese products entered for consumption since August 7, 2025. The Commerce Department will process refunds according to standard procedures.
The order grants broad authority to the Commerce Secretary to monitor Japan’s compliance. Trump reserved the right to modify the agreement if Japan fails to meet its commitments.
Unlike previous trade agreements, the executive order states that the Japanese investment package gives the U.S. government direct control over project selection. The order claims this approach will “secure American prosperity for generations.”