Executive summary

The United States Customs and Border Protection (US CBP) has released updated guidance, "Implementing Certain Tariff-Related Elements of the United States-Japan Agreement," detailing modifications to duties on Japanese-originating imports. This guidance consolidates previous executive orders and proclamations, providing a comprehensive approach to handling imports from Japan.

Additionally, the United States Trade Representative (USTR) has opened a request for comments on the continuation of Section 301 tariff exclusions for certain Chinese-originating imports, presenting an opportunity for stakeholders to engage in shaping future trade policies. Comments are due by 16 October 2025.

Updated guidance on Japanese-origin imports

General reciprocal tariff

The reciprocal tariff for Japanese-originating imports is determined by the Column 1 ad valorem or ad valorem equivalent duty rate in the Harmonized Tariff Schedule of the United States (HTSUS). Imports with a Column 1 duty rate of 15% or higher will have a reciprocal tariff of 0%. For imports with a duty rate less than 15%, the combined Column 1 and reciprocal tariff rate will total 15%. This approach applies to imports entered for consumption or withdrawn from a warehouse for consumption on or after 12:01 a.m. Eastern Time (ET) on 7 August 2025.

Civil aircraft

Japanese-originating imports qualifying under the World Trade Organization Agreement on Trade in Civil Aircraft, excluding drones, will no longer be subject to tariffs imposed by previous executive orders and proclamations. This applies to imports entered for consumption or withdrawn from a warehouse for consumption on or after 12:01 a.m. ET on 16 September 2025.

Automobiles and automobile parts

For Japanese-originating automobile imports, if the Column 1 duty rate is 15% or higher, the additional Section 232 tariff is 0%. If the duty rate is less than 15%, the combined Column 1 and Section 232 tariff rate will total 15%. This structure also applies to automobile parts. These guidelines are effective for imports entered for consumption or withdrawn from a warehouse for consumption on or after 12:01 a.m. ET on 16 September 2025.

Other products subject to Section 232

All other Japanese-originating imports subject to Section 232 tariffs remain exempt from reciprocal tariffs. There is no additional information on how outstanding Section 232 tariffs will be applied to other Japanese-originating imports.

Opportunity to engage on Section 301 extensions

The USTR has initiated a consultation process to evaluate whether tariff exclusions for Chinese-originating imports under Section 301 should continue beyond 29 November 2025. These exclusions relate to tariffs imposed on China due to issues involving technology transfer, intellectual property and innovation. The USTR will assess each exclusion based on product availability from sources outside of China, efforts to source from the US or third countries, and the potential impact on US interests. Stakeholders should consider participating in this consultation to contribute to future trade policy.

Comments may be submitted through the online portal by 16 October 2025: https://comments.ustr.gov/?. Interested parties seeking to comment on more than one exclusion must submit a separate comment for each exclusion.

Actions for businesses to consider

Affected companies importing goods into the US may want to consider some of the following actions, provided they align with business objectives:

• Analyze the impact of updated tariff structures and framework agreements on import strategies and compliance obligations.
• Engage with legal and trade advisors to navigate the complexities of new regulations and ensure compliance.
• Evaluate existing contracts with suppliers and customers to understand the impact of tariff changes on duties.
• Evaluate the impact on transfer prices for US distributors who purchase from related parties and identify that their products are now subject to the new duties. Along with analyzing duty impact while aligning the income tax and customs approaches, affected parties should also review the mechanics for reporting any transfer pricing adjustments to US Customs. This process may be particularly complex when duties are present for only part of the year. US Customs has specific rules for reporting adjustments to prices made after importation, including rules for transfer pricing adjustments. These rules require the importer to take specific actions before importing goods for which prices may be adjusted, including adding customs-specific language to transfer pricing policies. With proper planning, refunds may be available for duties paid if transfer prices are reduced.