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Newly manufactured cars awaiting export at a port in Yokohama, south of Tokyo, Japan, on March 27, 2025.<\/p>\n
Issei Kato | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
U.S. President Donald Trump signed an executive order<\/a> Thursday stateside to implement a trade deal with Japan, with 15% baseline tariffs on most Japanese goods, including autos.<\/p>\n The deal had been reached in July after months of negotiations, with Washington and Tokyo continuing to haggle over details for weeks before it was signed.<\/p>\n As part of the deal, Tokyo agreed to invest $550 billion in projects selected by the U.S. government and ramp up its purchase of American agricultural products, such as corn and soybeans, as well as U.S.-made commercial aircrafts and defense equipment.<\/p>\n The U.S. ally in Asia will also offer \u201cbreakthrough openings in market access\u201d in the manufacturing, aerospace, agriculture and automobile sectors, the Thursday order said. The agreement reached in July<\/a> had included Japan purchasing 100 Boeing planes, 75% higher imports of U.S. rice and $8 billion worth of agricultural and crop products.<\/p>\n Washington will apply a baseline 15% tariff on nearly all Japanese imports, with separate sector-specific levies for automobiles and parts (also 15%), aerospace products, generic pharmaceutical goods and natural resources, according to the executive order.<\/p>\n The Thursday order prevents Trump\u2019s country-specific tariffs on top of existing levies. The lower tariffs will apply retroactively to Japanese goods \u201centered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on August 7, 2025,\u201d the order stated. The tariff relief on automobiles is set to take effect after seven days.<\/p>\n Trump\u2019s global tariff campaign has thrown the global supply chain into disarray, in particular Japan\u2019s massive auto sector. Last month, Toyota<\/a>