Executive Order

Executive Order 14345 of September 4, 2025 Implementing the United States–Japan Agreement

ActiveExecutive Orders

Published

September 4, 2025

Lineage

Supersedes Executive Order 14257 of April 2, 2025 Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits

Ingested

June 29, 2026

Summary

Executive Order 14345, issued by the President on September 4, 2025, implements the United States–Japan Agreement to address trade imbalances and national security threats. It establishes a new tariff framework for Japanese imports, generally applying a 15% tariff while modifying previous duties on specific sectors, and reflects Japan's commitments to increase market access for U.S. goods and invest $550 billion in the United States. The order delegates authority to the Secretaries of Commerce and Homeland Security to implement and monitor these provisions.

Key provisions

This Executive Order (EO) 14345, issued on September 4, 2025, implements the United States–Japan Agreement announced on July 22, 2025. It leverages authorities under the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, and Section 232 of the Trade Expansion Act of 1962, among others, to address the national emergency declared in EO 14257 and national security threats identified in various proclamations regarding imports of aluminum, steel, automobiles, and copper.

Overview and Background

Purpose of the Agreement: The Agreement aims to establish a new era of U.S.-Japan trade relations based on reciprocity and shared national interests, level the playing field for American producers, account for national security needs, reduce the U.S. trade deficit, and strengthen the U.S. manufacturing and defense industrial base.
U.S. Commitments: The U.S. will apply a baseline 15% tariff on nearly all Japanese imports, with specific sector treatment for automobiles and parts, aerospace products, generic pharmaceuticals, and natural resources not readily available in the U.S.
Japan's Commitments: Japan will provide significant market access openings for U.S. manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods. This includes a 75% increase in U.S. rice procurements, $8 billion annually in purchases of U.S. agricultural goods (corn, soybeans, fertilizer, bioethanol), acceptance of U.S.-safety-certified passenger vehicles without additional testing, and purchases of U.S.-made commercial aircraft and defense equipment.
Major Investment: Critically, Japan has committed to invest $550 billion in the United States, with specific investments to be selected by the U.S. Government, aiming to generate jobs and expand domestic manufacturing.

General Tariffs (Section 2)

New Tariff Structure: For products of Japan, if the current Harmonized Tariff Schedule of the United States (HTSUS) Column 1 Duty Rate is less than 15%, an additional ad valorem rate will be applied to bring the total duty to 15%. If the Column 1 Duty Rate is 15% or more, the additional duty under this order will be zero percent.
Supersedes Previous Duties: These new duties replace the additional ad valorem duties previously imposed on products of Japan under Executive Order 14257, as amended.
Compliance Requirement & Effective Date: The tariffs apply retroactively 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. Refunds will be processed by CBP.
Directives & Compliance: The Secretary of Commerce, in consultation with USTR, Secretary of Homeland Security (CBP), and ITC Chair, must determine and make necessary HTSUS modifications via Federal Register notice. The Secretary may also issue rules, regulations, guidance, and procedures for implementing this section, including for determining "products of Japan."

Aerospace (Section 3)

Tariff Removal: For products of Japan falling under the World Trade Organization Agreement on Trade in Civil Aircraft (excluding unmanned aircraft), tariffs imposed by Executive Order 14257, Proclamation 9704 (Aluminum), Proclamation 9705 (Steel), and Proclamation 10962 (Copper) will no longer apply.
Effective Date: This tariff removal takes effect as of the date of publication of a Federal Register notice described below.
Directive & Compliance: Within 7 days of the publication of this Executive Order in the Federal Register (i.e., by September 16, 2025), the Secretary of Commerce, in consultation with the ITC Chair and CBP Commissioner, must publish a notice in the Federal Register modifying the HTSUS consistent with this section. The Secretary may also issue rules for determining "products of Japan."

Automobiles and Automobile Parts (Section 4)

New Tariff Structure: For automobiles and automobile parts that are products of Japan and subject to duties under Proclamation 10908 (March 26, 2025), if the HTSUS Column 1 Duty Rate is less than 15%, an additional ad valorem rate will be applied to bring the total duty to 15%. If the Column 1 Duty Rate is 15% or more, the additional duty will be zero percent.
Supersedes Previous Duties: These new duties replace the additional section 232 ad valorem duties previously imposed under Proclamation 10908.
Effective Date: This new tariff structure takes effect as of the date of publication of a Federal Register notice described below.
Directive & Compliance: Within 7 days of the publication of this Executive Order in the Federal Register (i.e., by September 16, 2025), the Secretary of Commerce, in consultation with the ITC Chair and CBP Commissioner, must publish a notice in the Federal Register modifying the HTSUS consistent with this section. The Secretary may also issue rules for determining "products of Japan."

Products Not Subject to Reciprocal Tariffs (Section 5)

Zero Tariff Authority: The Secretary of Commerce is authorized to modify the reciprocal tariff rate imposed under Executive Order 14257 to zero percent for specific products of Japan: natural resources unavailable (or unavailable at sufficient scale) in the U.S., generic pharmaceuticals, generic pharmaceutical ingredients, and generic pharmaceutical chemical precursors.
Decision Criteria: The Secretary's determination for applying zero tariffs must align with U.S. national interests, the order's purposes, addressing the national emergency (EO 14257), and reducing national security threats (Section 232). The Secretary should also consider the scope and nature of commitments made and actions taken by both the U.S. and Japan under the Agreement.

Monitoring and Modifications (Section 6)

Compliance Requirement: The Secretary of Commerce is directed to monitor Japan's implementation of its commitments under the Agreement and provide periodic updates to the President.
Presidential Authority: Should Japan fail to implement its commitments, the President reserves the right to modify this Executive Order as necessary to address the declared national emergency and national security threats.

Delegation and General Provisions (Sections 7-9)

Delegation of Authority: The Secretary of Commerce and the Secretary of Homeland Security are directed and authorized to take all necessary actions to implement this order, including issuing rules, regulations, guidance, and HTSUS modifications via Federal Register notices. They may employ powers granted to the President under IEEPA and Section 232.
Interagency Cooperation: All executive departments and agencies are directed to take appropriate measures within their authority to implement this order.
Supersession: Any provisions of previous proclamations and Executive Orders inconsistent with this order are superseded to the extent of such inconsistency.
No Private Right of Action: This order does not create any enforceable rights or benefits against the United States or its entities.

Ask this document

Enter

Knowledge graph

This document

Executive Orders

Executive Order 142…

Belongs to

Executive Orders

Supersedes (1)

Executive Order 14257 of April 2, 2025 Regulating Imports With a Reciprocal Tariff To Rectify Trade Practices That Contribute to Large and Persistent Annual United States Goods Trade Deficits

View original PDF →

Full document

Overview and Background

Purpose of the Agreement: The Agreement aims to establish a new era of U.S.-Japan trade relations based on reciprocity and shared national interests, level the playing field for American producers, account for national security needs, reduce the U.S. trade deficit, and strengthen the U.S. manufacturing and defense industrial base.

U.S. Commitments: The U.S. will apply a baseline 15% tariff on nearly all Japanese imports, with specific sector treatment for automobiles and parts, aerospace products, generic pharmaceuticals, and natural resources not readily available in the U.S.

Japan's Commitments: Japan will provide significant market access openings for U.S. manufacturing, aerospace, agriculture, food, energy, automobile, and industrial goods. This includes a 75% increase in U.S. rice procurements, $8 billion annually in purchases of U.S. agricultural goods (corn, soybeans, fertilizer, bioethanol), acceptance of U.S.-safety-certified passenger vehicles without additional testing, and purchases of U.S.-made commercial aircraft and defense equipment.

Major Investment: Critically, Japan has committed to invest $550 billion in the United States, with specific investments to be selected by the U.S. Government, aiming to generate jobs and expand domestic manufacturing.

General Tariffs (Section 2)

New Tariff Structure: For products of Japan, if the current Harmonized Tariff Schedule of the United States (HTSUS) Column 1 Duty Rate is less than 15%, an additional ad valorem rate will be applied to bring the total duty to 15%. If the Column 1 Duty Rate is 15% or more, the additional duty under this order will be zero percent.

Supersedes Previous Duties: These new duties replace the additional ad valorem duties previously imposed on products of Japan under Executive Order 14257, as amended.

Compliance Requirement & Effective Date: The tariffs apply retroactively 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. Refunds will be processed by CBP.

Directives & Compliance: The Secretary of Commerce, in consultation with USTR, Secretary of Homeland Security (CBP), and ITC Chair, must determine and make necessary HTSUS modifications via Federal Register notice. The Secretary may also issue rules, regulations, guidance, and procedures for implementing this section, including for determining "products of Japan."

Aerospace (Section 3)

Tariff Removal: For products of Japan falling under the World Trade Organization Agreement on Trade in Civil Aircraft (excluding unmanned aircraft), tariffs imposed by Executive Order 14257, Proclamation 9704 (Aluminum), Proclamation 9705 (Steel), and Proclamation 10962 (Copper) will no longer apply.

Effective Date: This tariff removal takes effect as of the date of publication of a Federal Register notice described below.

Directive & Compliance: Within 7 days of the publication of this Executive Order in the Federal Register (i.e., by September 16, 2025), the Secretary of Commerce, in consultation with the ITC Chair and CBP Commissioner, must publish a notice in the Federal Register modifying the HTSUS consistent with this section. The Secretary may also issue rules for determining "products of Japan."

Automobiles and Automobile Parts (Section 4)

New Tariff Structure: For automobiles and automobile parts that are products of Japan and subject to duties under Proclamation 10908 (March 26, 2025), if the HTSUS Column 1 Duty Rate is less than 15%, an additional ad valorem rate will be applied to bring the total duty to 15%. If the Column 1 Duty Rate is 15% or more, the additional duty will be zero percent.

Supersedes Previous Duties: These new duties replace the additional section 232 ad valorem duties previously imposed under Proclamation 10908.

Effective Date: This new tariff structure takes effect as of the date of publication of a Federal Register notice described below.

Products Not Subject to Reciprocal Tariffs (Section 5)

Zero Tariff Authority: The Secretary of Commerce is authorized to modify the reciprocal tariff rate imposed under Executive Order 14257 to zero percent for specific products of Japan: natural resources unavailable (or unavailable at sufficient scale) in the U.S., generic pharmaceuticals, generic pharmaceutical ingredients, and generic pharmaceutical chemical precursors.

Decision Criteria: The Secretary's determination for applying zero tariffs must align with U.S. national interests, the order's purposes, addressing the national emergency (EO 14257), and reducing national security threats (Section 232). The Secretary should also consider the scope and nature of commitments made and actions taken by both the U.S. and Japan under the Agreement.

Monitoring and Modifications (Section 6)

Compliance Requirement: The Secretary of Commerce is directed to monitor Japan's implementation of its commitments under the Agreement and provide periodic updates to the President.

Presidential Authority: Should Japan fail to implement its commitments, the President reserves the right to modify this Executive Order as necessary to address the declared national emergency and national security threats.

Delegation and General Provisions (Sections 7-9)

Delegation of Authority: The Secretary of Commerce and the Secretary of Homeland Security are directed and authorized to take all necessary actions to implement this order, including issuing rules, regulations, guidance, and HTSUS modifications via Federal Register notices. They may employ powers granted to the President under IEEPA and Section 232.

Interagency Cooperation: All executive departments and agencies are directed to take appropriate measures within their authority to implement this order.

Supersession: Any provisions of previous proclamations and Executive Orders inconsistent with this order are superseded to the extent of such inconsistency.

No Private Right of Action: This order does not create any enforceable rights or benefits against the United States or its entities.