WHAT’S THE LATEST

On September 4, President Trump signed an Executive Order implementing the U.S.-Japan trade agreement. The agreement introduces a baseline 15% tariff on nearly all Japanese imports, along with separate sector-specific duties outlined below.

WHAT WE KNOW

  • Baseline Tariff: A 15% ad valorem duty will apply to all Japanese imports.
    • If the current duty is below 15%, the difference will be added.
    • If it's 15% or higher, no extra duty will be imposed.
  • Automobiles & Automobile Parts: These shipments are also subject to a 15% duty, reduced from the prior 27.5%.
  • Aerospace Products: Goods falling under the Civil Aircraft provision are exempt from duty.
  • Special Zero-Duty Categories:
    • Duty-free treatment applies to:
      • Natural resources that are unavailable or insufficient in the U.S.
      • Generic pharmaceuticals, their ingredients and chemical precursors.
    • Further details from the Department of Commerce are pending.
  • Specific/Compound Duties: Follows the framework outlined in Executive Order 14326 (EU Agreement), Annex II.
    • The 15% tariff applies retroactively to qualifying Japanese goods entered or withdrawn for consumption on or after August 7 at 12:01 a.m. ET.
    • The refund process is pending (CSMS #66146676).
    • IMPORTANT GUIDANCE: CBP advises that the trade community is “not to file a Post Summary Correction or protest until CBP issues instructions on how those requests for refunds should be submitted. CBP will provide additional guidance to the trade community through CSMS messages as appropriate.”

WHAT'S NEXT?

Our team is closely monitoring developments and is ready to support your compliance strategies, product classification updates and refund requests once CBP issues guidance.

  • SEKO recommends that importers:
    • Update product classification databases to reflect new duty rates and categories.
    • Monitor CBP communications for upcoming instructions regarding refunds and protest filings.

If you have questions, please reach out to your SEKO representative, or email us at hello@sekologistics.com.