EO 14345 implements US-Japan Joint Statement tariff framework

On 4 September 2025 President Donald J. Trump signed Executive Order 14345, implementing the tariff-related elements of the 22 July 2025 US-Japan Joint Statement framework negotiated by US Trade Representative Jamieson Greer and Japan’s Minister for Economic Revitalization Ryosei Akazawa.¹² The order replaces the prior 25 per cent country-specific reciprocal rate for Japan (set under EO 14326 Annex I, effective 12:01 a.m. EDT 7 August 2025) with a 15 per cent reciprocal rate, and reduces the Section 232 automobile and auto-parts tariff for Japanese imports from 25 per cent to 15 per cent under Proclamation 10908 as amended.³⁴ The Government of Japan announced an approximately $550 billion package of Japanese investment commitments in the United States alongside the framework — comprising principally corporate and sovereign-fund commitments rather than direct sovereign expenditures.⁵ The order operates in the lineage chain EO 14257 (2 April 2025) → EO 14266 (9 April, suspending elevated country-specific rates) → EO 14316 (7 July, extending the pause) → EO 14326 (31 July, setting country- specific rates) → EO 14345 (this order).⁶ EO 14345 invokes the International Emergency Economic Powers Act, 50 U.S.C. § 1702(a)(1)(B), the National Emergencies Act, 50 U.S.C. § 1601 et seq., § 604 of the Trade Act of 1974 (19 U.S.C. § 2483) and 3 U.S.C. § 301.⁷⁸⁹

1. The 15 per cent reciprocal rate replaces — does not stack on top of — the previously scheduled 25 per cent country-specific rate; the EO 14257 § 2(a) 10 per cent baseline ceases to be the operative reciprocal rate for Japanese imports. The Section 232 auto and parts rate reduction from 25 per cent to 15 per cent conforms the sectoral rate to the reciprocal rate, consistent with EO 14289’s anti-stacking precedence between Section 232 auto/parts and other covered actions.¹⁰

2. The Federal Circuit, sitting en banc, held 7-4 on 29 August 2025 in V.O.S. Selections, Inc. v. United States, No. 25-1812 (Fed. Cir.) that the IEEPA “regulate … importation” verb at 50 U.S.C. § 1702(a)(1)(B) does not authorise the reciprocal tariffs imposed under EO 14257; the court affirmed declaratory relief and vacated the universal injunction in light of Trump v. CASA, Inc., 145 S. Ct. 2540 (2025), with the mandate stayed until 14 October 2025 pending Supreme Court review.¹¹¹² The government filed a petition for certiorari on 4 September 2025; collection of duties continues under the stay.¹³

3. As an executive agreement implemented by presidential proclamation, the framework does not require US Senate advice and consent or Japanese Diet approval; CBP collects the duty under HTSUS Chapter 99 subchapter III subheadings activated by Annex III of EO 14345, per the implementing CBP CSMS guidance.¹⁴¹⁵ The announced Japanese investment package operates through corporate financings and contracts; its enforceability rests on those underlying instruments rather than on EO 14345 itself.