Japan Tariff Rates 2026: 12.5% on US Imports

Japan continues to face a 10% base tariff rate — now the Section 301 forced-labor tariff that replaced Section 122 on July 24, 2026. 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 now falls under the Section 301 forced-labor tariff, which replaced the expired Section 122 baseline on July 24, 2026. Japan's rate was already at the 10% floor, so the ruling has no practical effect on Japanese imports. Section 232 metals tariffs apply at 50% on articles wholly of steel/aluminum and 25% on derivative products (both on full customs value, after the April 6, 2026 restructuring). Japanese automakers continue expanding US manufacturing (Toyota in Kentucky, Honda in Ohio) as a tariff hedge.

Tips for Importers

Japanese passenger vehicles in note 33(b) (HTS 8703 except 8703.21) enter at 15% ordinary duty under heading 9903.94.41 when Column 1 is under 15%. That is not 2.5% MFN plus the forced-labor tariff. 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. A Mexican note 33(b) passenger vehicle is 27.5%, and USMCA does not waive heading 9903.94.01. Section 122 expired July 24, 2026 and was replaced by the forced-labor tariff, so the 10% base layer remains in place on goods that are not this vehicle entry.

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. Japanese passenger cars in U.S. note 33(b) (HTS 8703 except 8703.21) currently enter at 15% ordinary duty under heading 9903.94.41 when Column 1 is under 15% (USITC HTS Revision 21). Note 52(f)(2) keeps the forced-labor headings off that entry. 8703.21 is outside the list and is 12.5%. 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 301 forced-labor tariff (which replaced Section 122 on July 24, 2026) applies. Compared to South Korea, Japan lacks an FTA with the US. The KORUS agreement gives Korean exporters preferential duty-free access (below the MFN rate) on qualifying originating goods, which Japan cannot match — a competitive gap that the SCOTUS ruling did not close. Both countries now face the same 10% Section 301 forced-labor tariff, but KORUS still provides South Korea with a structural advantage on MFN-liable products.