US – Japan Agreement Implementation Trade Agreement and Tariff Modifications

On September 15, 2025, U.S. Customs and Border Protection (CBP) issued guidance via CSMS #66242844 on the implementation of the United States – Japan Agreement and modifications to duties on imports from Japan.  Effective August 7, 2025, the agreement establishes a baseline tariff of 15% on nearly all Japanese imports, with sector-specific provisions for automobiles, automobile parts, and aerospace products. 

Reciprocal Tariff Guidance

The reciprocal tariff applied to Japanese products depend on the Column 1 ad valorem duty rate of the imported item.  Additionally, CBP provided specific instructions for calculating both specific and compound rates of duty calculation in their notice.

• If Column 1 duty rate is greater than or equal to 15%
  • No additional reciprocal tariff applies
  • Use HTSUS heading 9903.02.72
• If Column 1 duty rate is less than 15%
  • A reciprocal tariff is added to bring the total to 15%. 
  • Use HTSUS heading 9903.02.73

Civil Aircraft 

Effective September 16, 2025, Japanese products covered under the Trade in Civil Aircraft Agreement, except for unmanned aircraft, are exempt from reciprocal tariffs, as well as aluminum, steel, and copper tariffs.

• Use the HTSUS heading 9903.96.02 when declaring these products.

Automobile and Automobile Parts 

Additionally, effective September 16, 2025, the Federal Register updated Section 232 duties on passenger vehicles, light trucks and automobile parts originating from Japan:

• If Column 1 duty rate is greater than or equal to 15%
  • No additional Section 232 tariff applies.
  • Use HTSUS heading 9903.94.40 or 9903.94.42
• If Colum 1 duty rate is less than 15%
  • A Section 232 tariff is added to bring the total to 15%.
  • Use HTSUS heading 9903.94.41 or 9903.94.43

Additional Guidance

All products of Japan subject to Section 232 actions- including aluminum, steel, copper, and automotive goods - will remain exempt from reciprocal tariffs. Previously established exemptions will continue to apply.  

CBP also outlined the HTS sequencing process required to ensure accurate duty calculations.

Resources:

• Federal Register: Implementing Certain Tariff-Related Elements of the United States-Japan Agreement
• CSMS # 66242844 - Updated Guidance - Implementation of the United States-Japan Agreement and Modification of Duties on Imports from Japan
• CSMS # 66146676 - INTERIM GUIDANCE: Retroactive Implementation of the United States-Japan Agreement
• Japan Trade Agreement – Effective Retroactively | C.H. Robinson