US Tariffs on Imports from Japan

Japan continues to face a 10% tariff rate — now under Section 122 authority following the SCOTUS ruling. With $148B in annual US imports, Japan's position is unchanged and remains favorable compared to the old IEEPA regime that hit other Asian exporters much harder.

The US-Japan trade relationship lacks a comprehensive FTA, though a Phase 1 trade agreement reached in 2019 reduced tariffs on a limited set of agricultural and industrial goods. Japan is the US's fourth-largest goods trading partner. The economic alliance is reinforced by security cooperation and shared interests in semiconductor supply chain resilience. Japan is a member of CPTPP but the US is not.

Key Products Imported from Japan

Top imports include passenger vehicles and auto parts (Toyota, Honda, Subaru, Nissan), machinery, electrical equipment, optical and medical instruments, and organic chemicals. Japan is also a major supplier of advanced materials, machine tools, and semiconductor manufacturing equipment.

Recent Changes

Feb 20, 2026: SCOTUS struck down IEEPA tariffs; Japan's 10% rate continues under Section 122 (expires ~July 24, 2026). Japan's rate was already at the 10% floor, so the ruling has no practical effect on Japanese imports. Section 232 steel and aluminum tariffs of 50% remain. Japanese automakers continue expanding US manufacturing (Toyota in Kentucky, Honda in Ohio) as a tariff hedge.

Tips for Importers

Japanese vehicles enter at 2.5% MFN plus 10% Section 122 for a total of 12.5% — competitive compared to the pre-ruling era when South Korea faced 25% and the EU 20%. For machinery and semiconductor equipment, verify HTS classifications for potential 0% MFN treatment. Many Japanese companies (Toyota, Honda, Subaru) have extensive US or Mexico manufacturing that provides USMCA-qualifying alternatives. The Section 122 expiry in ~July 2026 could remove the 10% layer entirely.

Auto Industry and Electronics Trade

Japan is the third-largest auto exporter to the US, behind Mexico and Canada. Toyota, Honda, Nissan, and Subaru together account for roughly 35% of new vehicles sold in America, though a growing share are now built in US and Mexican plants. The 25% Section 232 auto tariff applies to finished vehicles imported from Japan, stacking with the 10% Section 122 rate for a combined 35% on passenger cars. Japanese automakers have responded by shifting production — Toyota's Georgetown, Kentucky plant is its largest worldwide, and Honda operates major facilities in Ohio, Indiana, and Alabama. For electronics, Japan remains a critical supplier of components, sensors, and advanced materials used in semiconductor manufacturing. Tokyo Electron is one of only a handful of companies producing the lithography and etching tools needed for chip fabrication. Most of these tools enter at 0% MFN under the Information Technology Agreement, so only the 10% Section 122 tariff applies. Compared to South Korea, Japan lacks an FTA with the US. The KORUS agreement gives Korean exporters duty-free MFN access on qualifying goods, which Japan cannot match — a competitive gap that the SCOTUS ruling did not close. Both countries now face the same 10% Section 122 rate, but KORUS still provides South Korea with a structural advantage on MFN-liable products.