Implementing Certain Tariff-Related Elements of the United States-Japan Agreement

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC> [Docket No. 250912-0154; RTID 0625-XC057]</DEPDOC> <SUBJECT>Implementing Certain Tariff-Related Elements of the United States-Japan Agreement</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> International Trade Administration, U.S. Department of Commerce. <HD SOURCE="HED">ACTION:</HD> Notice. <SUM> <HD SOURCE="HED">SUMMARY:</HD> On July 23, 2025, the President announced a framework agreement between the United States and Japan (the Agreement), which lays the foundation for a new era of U.S.-Japan trade relations grounded in principles of reciprocity and our shared national interests. On September 4, 2025, the President issued Executive Order 14345, Implementing the United States-Japan Agreement, finding that specified tariff actions are consistent with the national interests 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 certain proclamations issued under Section 232 of the Trade Expansion Act of 1962. Executive Order 14345 also directed and authorized the Secretary of Commerce (Secretary) to publish in the <E T="04">Federal Register</E> changes to the Harmonized Tariff Schedule of the United States (HTSUS) with respect to general tariffs on Japanese goods (in consultation with the United States Trade Representative, the Secretary of Homeland Security acting through the Commissioner of U.S. Customs and Border Protection (CBP), and the Chair of the United States International Trade Commission (ITC)); products of Japan that fall under the World Trade Organization Agreement on Trade in Civil Aircraft, except for unmanned aircraft (in consultation with the Chair of the ITC and the Commissioner of CBP); and products of Japan subject to duties under Proclamation 10908 of March 26, 2025 (Adjusting Imports of Automobiles and Automobile Parts Into the United States) (in consultation with the Chair of the ITC and the Commissioner of CBP). This notice amends the HTSUS to implement these provisions of the Agreement. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> The changes in the Harmonized Tariff Schedule of the United States are effective September 16, 2025 except as otherwise provided for in this notice. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Emily Davis, Director for Public Affairs, International Trade Administration, U.S. Department of Commerce, 202-482-3809, <E T="03">Emily.Davis@trade.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">I. Background</HD> On July 23, 2025, the President announced an Agreement between the United States and Japan (the Agreement), which lays the foundation for a new era of U.S.-Japan trade relations grounded in principles of reciprocity and our shared national interests ( <E T="03">https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-secures-unprecedented-u-s-japan-strategic-trade-and-investment-agreement/</E> ). On September 4, 2025, the President signed Executive Order 14345, which states that the Agreement establishes a tariff framework that levels the playing field for American producers and accounts for American national security needs. 90 FR 43535 (Sept. 9, 2025). The Agreement will reduce the U.S. trade deficit, boost the economy of the United States, and address the consequences of the U.S. trade deficit, including by strengthening the manufacturing and defense industrial base of the United States. In addition to raising billions in revenue, this new tariff framework under the Agreement, combined with expanded U.S. exports and investment-driven production, will help reduce the trade deficit with Japan and restore greater balance to the overall U.S. trade position. Under the Agreement, the United States will apply a baseline 15 percent <E T="03">ad valorem</E> 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. In Executive Order 14345, the President found that the Agreement is necessary and appropriate to address the national emergency declared in Executive Order 14257 of April 2, 2025, Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices That Contribute to Large and Persistent Trade Deficits, as amended, and to reduce or eliminate the threats to national security found in Proclamation 9704 of March 8, 2018, Adjusting Imports of Aluminum Into the United States, as amended; Proclamation 9705 of March 8, 2018, Adjusting Imports of Steel Into the United States, as amended; Proclamation 9888 of May 17, 2019, Adjusting Imports of Automobiles and Automobile Parts Into the United States, as amended; and Proclamation 10962 of July 30, 2025, Adjusting Imports of Copper Into the United States. Executive Order 14345 directed the Secretary of Commerce (Secretary), in consultation with the United States Trade Representative; the Secretary of Homeland Security, acting through the Commissioner of CBP; and the Chair of the ITC, to determine whether modifications to the HTSUS are necessary or appropriate to effectuate the order and authorized him to make modifications through notice in the <E T="04">Federal Register</E> . That order requires changes to the additional <E T="03">ad valorem</E> rate of duty applicable to products of Japan, which are to be determined by a product's current <E T="03">ad valorem</E> (or <E T="03">ad valorem</E> equivalent) rate of duty under column 1 of the HTSUS (Column 1 Duty Rate). For a product of Japan with a Column 1 Duty Rate that is less than 15 percent, the sum of its Column 1 Duty Rate and the additional <E T="03">ad valorem</E> rate of duty is 15 percent. For a product of Japan with a Column 1 Duty Rate that is at least 15 percent, the additional rate of duty pursuant to Executive Order 14345 is zero. Per Executive Order 14345, treatment of specific or compound duty rates is identical to the treatment provided to products of the European Union, as outlined in Executive Order 14326 of July 31, 2025, Further Modifying the Reciprocal Tariff Rates. The duties, which are set forth in Annex 1(a) to this notice, apply in lieu of the additional <E T="03">ad valorem</E> duties previously imposed on products of Japan under Executive Order 14257, as amended. These modifications apply to products of Japan entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on August 7, 2025. Executive Order 14345 also directed the Secretary, in consultation with the Chair of the ITC and the Commissioner of CBP, to publish a notice in the <E T="04">Federal Register</E> modifying the HTSUS so that tariffs applied under Executive Order 14257, as amended; Proclamation 9704, as amended; Proclamation 9705, as amended; and Proclamation 10962 do not apply to products of Japan that fall under the World Trade Organization Agreement on Trade in Civil Aircraft, except for unmanned aircraft. These modifications are set forth in Annex 1(b) to this notice and are effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after September 16, 2025. Finally, Executive Order 14345 directed the Secretary, in consultation with the Chair of the ITC and the Commissioner of CBP, to publish a notice in the <E T="04">Federal Register</E> amending the HTSUS to allow for the additional <E T="03">ad valorem</E> rate of duty applicable to an automobile or automobile part that is a product of Japan and subject to duties under Proclamation 10908 to be determined by the product's Column 1 Duty Rate. For a product of Japan with a Column 1 Duty Rate that is less than 15 percent, the sum of its Column 1 Duty Rate and the additional automobile or automobile part Proclamation 10908 <E T="03">ad valorem</E> rate of duty are 15 percent. For a product of Japan with a Column 1 Duty Rate that is at least 15 percent, the additional automobile or automobile part Proclamation 10908 <E T="03">ad valorem</E> rate of duty imposed is zero. These modifications are set forth in Annex 1(c) to this notice and are effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after September 16, 2025. <SIG> <DATED>Dated: September 12, 2025.</DATED> <NAME>William Kimmitt,</NAME> Under Secretary for International Trade, United States Department of Commerce. </SIG> <HD SOURCE="HD1">Annex I</HD> <EXTRACT> a. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on August 7, 2025, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified as follows: 1. Heading 9903.02.30 is hereby terminated. 2. U.S. note 2(v)(xv) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified by inserting the following in lieu thereof: “As provided in headings 9903.02.19, 9903.02.20, 9903.02.72, and 9903.02.73, for any good of the European Union or Japan subject to a specific or compound rate of duty under column 1—General, the ad valorem equivalent rate of duty of such good shall be determined by dividing the amount of duty payable under column 1—General by the customs value of the good. For example, if a good were subject to a specific duty of 50 cents per kilogram, and one kilogram of the good were entered with a customs value of $10, then the ad valorem equivalent rate of duty would be obtained by dividing 50 cents by $10, yielding 5 ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 34k characters. 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