US-Japan Trade Deal
SEPTEMBER 8, 2025
GEORGIA CHAMBER OF COMMERCE
US-Japan Trade Deal
On September 4th, President Trump signed an executive order decreasing the tariff rate to 15 percent for automobiles and other imported products from Japan. Previously, a 25 percent tariff was applied, with a rate of 27.5 percent being applied to automobiles, as a result of a trade agreement formalized on July 22nd.
Trade Deal Highlights
The United States will apply a baseline 15 percent tariff on nearly all Japanese imports, along with separate sector-specific treatment for automobiles and automobile parts, aerospace products, generic pharmaceuticals, and natural resources that are not naturally available or produced in the United States.
There will be no stacking on the existing tariff rate. Reciprocal tariffs on most other goods are also set at the same rate without stacking. Aircraft and aircraft parts will be excluded from reciprocal tariffs.
Japan will provide American industries with breakthrough openings in market access across key sectors.
Specifically:
Japan will increase its purchase of U.S. grown rice by 75 percent.
The Government of Japan has also committed to buying $8 billion of United States agricultural goods including corn, soybeans, fertilizer, and bioethanol.
In addition, Japan is also working to accept U.S.-manufactured and U.S.-safety-certified passenger vehicles without additional testing.
Separately, Japan will purchase United States-made commercial aircraft, as well as United States defense equipment.
Finally, the Government of Japan has agreed to invest $550 billion in the United States, and these investments will be selected by the United States government.
National Impacts
Automobiles account for 20 percent of Japan’s exported products, and the United States is its largest export market.
Impacts on Georgia
In 2024, Georgia’s top imported products were:
$15 BILLION
$5.7 BILLION
$4.2 BILLION
$3.8 BILLION
$4.7 BILLION
In 2024, Georgia’s top exported products were:
Civilian Aircraft & Ancillary Parts
$12.6 BILLION
$2.4 BILLION
$1.6 BILLION
$1.3 BILLION
$1.8 BILLION
Big Picture for Georgia
There are more than 510 Japanese facilities operating in Georgia. These Japanese-affiliated companies employ approximately 39,200 Georgians.
The port of Brunswick became the nation’s top roll on/roll off facility for automotive and heavy equipment in 2024. Greater stability for the automobile industry benefits Georgia as autos flow through Brunswick to manufacturing facilities across the U.S.
In 2023, Japan ranked 5th among Georgia’s importer nations and was the 7th largest export market. Top exports included aircraft and automobiles, and top imports included construction vehicles, motor vehicles, and engines among other products. All of these are products reflected in this agreement and will be positively impacted by the adjusted tariff rate and increased predictability.
Sources
Georgia- Japan Connection, Georgia Department of Economic Development
2024 Annual Trade Report, Georgia Department of Economic Development
Trump Tariffs, U.S. President signs order to cut levies on Japanese cars to 15%, BBC
Implementing the United States- Japan Agreement, The White House