US President Donald Trump signed an executive order to implement the US-Japan trade agreement, marking a significant step in bilateral trade relations. The agreement lowers tariffs on Japanese automobiles to 15% and includes a $550 billion investment commitment from Tokyo, the White House said.
Trump described the pact as ushering in "a new era of United States-Japan trade relations." The executive order officially enforces the long-anticipated agreement, which sets a baseline 15 percent tariff on most Japanese imports entering the United States.
🇺🇸🤝🇯🇵@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
“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 US trade position," the agreement read.
In return, Japan has agreed to expand market access for American goods across key sectors, including manufacturing, aerospace, agriculture, food, energy, automobiles, and industrial products. The agreement provides reciprocal economic benefits aimed at reshaping bilateral trade.
Under the executive order published by the White House, Japanese autos will face a 15-percent tariff, down from the current 27.5 percent, while tariffs on many other goods will also be capped at 15 percent.
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