Tariff Cut for Japanese Autos and Auto Parts to Take Effect Within 7 Days
The executive order implementing the U.S.-Japan tariff deal is scheduled for publication in the Federal Register on Sept. 9, starting a seven-day clock for publication of a subsequent notice reducing tariffs on Japanese autos and auto parts currently subject to 25% Section 232 tariffs.
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As announced last week (see 2509050065), tariffs on goods covered by the reciprocal tariffs will have a retroactive reduction to an all-inclusive 15% rate. These goods, which were tariffed at 15% plus most favored nation (MFN) duties, if they entered on or after Aug. 7 (and didn't qualify for the in-transit exception), will get a refund of MFN duties, essentially, since the new rate is 15% minus MFN.
The executive order said that the commerce secretary will publish a notice to change the Harmonized Tariff Schedule to make the changes for autos and auto parts within seven days of the order's publication, and the change will take effect on the day of the Commerce notice's publication.
The commerce secretary may issue "rules for determining what are 'products of Japan,'" and therefore that qualify for the inclusive 15% rate, the notice says.