Trump Approves US-Japan Trade Deal Order, Imposes 15% Baseline Tariff
By Global Leaders Insights Team | Sep 05, 2025
US President Donald Trump has signed an executive order implementing the long-anticipated US-Japan trade agreement, introducing a baseline 15% tariff on nearly all Japanese imports entering the United States. The White House confirmed the development in a statement on Thursday, calling it a new phase in bilateral trade relations based on reciprocity and national interest.
Key Highlights
- President Trump signed an executive order enforcing US–Japan trade deal, setting a 15% tariff on imports.
- Japan will invest $550 billion in the U.S., expanding market access and reducing trade imbalances.
The agreement also outlines sector-specific terms for automobiles, aerospace products, pharmaceuticals, and natural resources. In return, Japan has pledged $550 billion in investments in the United States, alongside commitments to purchase US-made commercial aircraft, defence equipment, and a wide range of American goods.
Notably, Tokyo will increase US rice imports by 75% under the Minimum Access scheme and procure American agricultural products—including corn, soybeans, fertilisers, and bioethanol—worth $8 billion annually. These measures, according to the White House, will generate jobs, strengthen domestic manufacturing, and expand US export opportunities.
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The executive order highlights that this agreement is designed to reduce the US trade deficit with Japan, boost investment-driven production, and safeguard national security interests. Meanwhile, Japan’s chief negotiator Akazawa Ryosei has travelled to Washington for further rounds of bilateral discussions.
