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EO 14345Executive OrderTrump 47 · R

Executive Order 14345

Implementing the United States-Japan Agreement

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In simple terms

This executive order implements a U.S.-Japan trade agreement by establishing a 15% baseline tariff on most Japanese imports with sector-specific modifications: aerospace tariffs are eliminated, automobile tariffs are adjusted to a 15% cap, and certain natural resources and generic pharmaceuticals receive zero tariffs. The order also commits Japan to $550 billion in U.S. investments, increased agricultural purchases, and defense equipment procurement.

Federal Register Open PDF 90 FR 43535

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 90 FR 43535

    Federal Register PDF

  3. Federal Register notice for automobile HTSUS modifications

  4. Retroactive tariff application effective date

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Steel & aluminumAutosAerospaceAgriculturePharmaOil & gas

Mechanisms

TariffProcurementSubsidy / incentive

Role pressure

  • MixedImporter — 15% baseline is lower than some prior reciprocal tariffs but still protective; specific sectors get relief
  • ProtectiveDomestic producer — Baseline 15% tariff and Japanese market access commitments benefit U.S. manufacturing, agriculture, and aerospace
  • MixedTrading-partner exporter — Japanese exporters face 15% floor but gain exemptions in aerospace; Japanese agriculture/energy sectors face competitive pressure from U.S. imports
  • MixedDownstream manufacturer — Natural resource and generic pharmaceutical zero tariffs reduce input costs; other inputs face 15% floor

Geographies

USJP

Exposure dates

  • — Retroactive tariff application effective date

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

EADSYAirbusAAAlcoaADMArcher Daniels MidlandBABoeingBGBungeCATCaterpillarCENXCentury AluminumLNGCheniere EnergyCVXChevronCLFCleveland-CliffsCOPConocoPhillipsCTVACortevaLLYEli LillyXOMExxon MobilFFordGEGE AerospaceGEVGE VernovaGMGeneral MotorsHONHoneywellHYMTFHyundai MotorJNJJohnson & JohnsonLMTLockheed MartinMRKMerckNOCNorthrop Grumman

Confidence: medium · Policy alerts

Key directives

  • Establish 15% baseline tariff on Japanese imports with Column 1 Duty Rate below 15%
  • Eliminate additional duties on aerospace products under WTO civil aircraft agreement
  • Cap automobile/automobile part section 232 duties at 15% for Japanese products
  • Authorize zero tariffs for specific natural resources, generic pharmaceuticals, and precursors
  • Retroactive application to August 7, 2025 entries
  • Commerce Secretary to publish Federal Register notice within 7 days of publication
  • Monitor Japan's implementation of agreement commitments

Who is ordered

Prior policy

  • supersedeExecutive Order 14257 (as amended) for Japanese products
  • otherProclamation 9704 (aluminum tariffs for Japanese aerospace)
  • otherProclamation 9705 (steel tariffs for Japanese aerospace)
  • otherProclamation 9888 (automobile tariffs)
  • otherProclamation 10962 (copper tariffs for Japanese aerospace)
  • otherProclamation 10908 (automobile section 232 duties for Japan)

Related orders

What to expect

Immediate

  • Tariffs apply retroactively to August 7, 2025 entries
  • Aerospace tariff elimination upon Federal Register notice
  • Automobile tariff modification upon Federal Register notice

Near term (90d)

  • Federal Register notices required within 7 days of publication
  • Commerce Secretary monitoring of Japanese implementation begins
  • Potential HTSUS modifications

Long term

  • $550 billion Japanese investment in U.S. over unspecified timeframe
  • $8 billion annual Japanese agricultural purchases
  • 75% increase in U.S. rice procurements under Minimum Access scheme
  • Expanded U.S. commercial aircraft and defense equipment sales to Japan

Risks & tensions

  • Japan's $550 billion investment commitment lacks enforcement mechanism or timeline in text
  • Conditionality: order warns of reinstating harsher tariffs if Japan fails to implement commitments
  • Retroactive application to August 7 may create refund/administrative burdens
  • 'Products of Japan' rules of origin determinations could become contentious
  • Aerospace exemption limited to WTO civil aircraft agreement, excluding unmanned aircraft
Executive Order 14345: Implementing the United States-Japan Agreement · Executive Orders