Most Japanese Goods to Face 15% All-inclusive Reciprocal Tariff, Retroactive to Aug. 7
Japanese goods with most favored nation (MFN) duties of 15% or lower will be subject to a 15% reciprocal tariff, all inclusive, retroactive to 12:01 ET Aug. 7, the White House said in an executive order. The order applies the same 15% rule for goods subject to Section 232 tariffs on autos and auto parts upon publication of a Federal Register notice modifying the Harmonized Tariff Schedule. That notice will come within seven days of the executive order being published.
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Refunds will be processed by "CBP’s standard procedures for such refunds," the executive order said. Goods with an MFN rate higher than 15% will not owe reciprocal tariffs. If goods are subject to specific or compound duty rates, the methodology described in the July 31 executive order for EU goods will apply.
The executive order also says that aerospace products will continue to be traded duty-free, and that the Commerce Secretary will have the option to offer duty-free treatment for natural resources unavailable at sufficient scale to satisfy American demand, and for generic drugs, ingredients and chemical precursors. However, it says the timing of tariff reductions will depend on the actions Japan takes to implement its commitments and the scope and nature of Japan's commitments.