On Thursday, September 4, 2025, President Trump signed an Executive Order establishing a baseline 15% tariff on nearly all Japanese imports, including cars, auto parts, aerospace goods, generic pharmaceuticals, and select natural resources not available domestically.

For products with a Column 1 duty rate below 15%, the total duty will increase to 15%. If the product already carries a Column 1 duty rate of 15% or higher, no additional duty applies.

Importantly, this tariff structure replaces prior duties under Executive Order 14257, avoiding double-taxation scenarios.   However, if a good was exempt from the reciprocal tariffs under Executive Order 14257, they will remain exempt from the 15% tariff. 

The tariffs are retroactive to 12:01 a.m. ET on August 7, meaning CBP will adjust duties accordingly and process refunds as applicable.

Specific sectors receive tailored treatment as outlined in the EO; exemptions for commercial aircraft and parts are confirmed, and other sectors may follow via forthcoming guidance.

What does this mean for your business?

  • Goods from Japan will now mirror the EU tariff structure and will be subject to a total of 15%.  This is now inclusive of the normative baseline HTS duty rate identified in column 1 of the USHTS.  As example, if a good’s current baseline tariff is less than 15%, then the duty rate is raised to 15%.  If a good’s current baseline duty rate is greater than 15%, then no additional tariff will be imposed.
  • Goods previously excluded from reciprocal tariffs will remain excluded from the now total 15%. 
  • There could be Post Summary Correction opportunities for obtaining refunds on goods from Japan entered or withdrawn on or after August 7th.  We are pulling reports and reaching out to affected customers. 

As always, Shapiro is closely monitoring the current trade environment and will keep you apprised of any changes or updates as they arise.