On September 4, 2025, President Trump issued an executive order to implement the United States–Japan Agreement, a landmark trade framework designed to rebalance economic relations between the two nations. The agreement introduces a baseline 15% tariff on nearly all Japanese imports, with sector-specific adjustments for automobiles, aerospace, pharmaceuticals, and natural resources not produced domestically. This move aims to reduce the U.S. trade deficit, strengthen national security, and revitalize American manufacturing. Japan, in turn, will significantly expand its purchases of U.S. agricultural products—totaling $8 billion annually—and open its markets to American-made vehicles and aircraft without additional testing requirements.
A key highlight of the agreement is Japan’s unprecedented commitment to invest $550 billion in the United States, targeting strategic sectors such as defense, energy, and manufacturing. These investments, selected by the U.S. government, are expected to create hundreds of thousands of jobs and bolster the country’s industrial base. The executive order also outlines retroactive tariff applications and provides mechanisms for modifying trade regulations to align with national interests. This agreement marks a new era of reciprocal trade, reinforcing the U.S.–Japan alliance while prioritizing American economic and security objectives.
The full executive order can be found here:
Implementing The United States–Japan Agreement – The White House