Tariff Talk

The week ended with the announcement of a trade deal with Japan and some adjustments to commodities on the Annex II list of items excluded from reciprocal tariffs. The deal with Japan sparked excitement, as it confirmed that the reciprocal rate would hold and be capped at 15%, with a retroactive date of August 7. U.S. Customs has since issued guidance to prepare but to hold any refund requests until further instructions are provided. New tariff numbers have yet to be assigned to align Japan’s tariffs with the same “cap” parameters as those applied to the European Union.

The Japan agreement will also include a list of excluded articles, such as natural resources unavailable in the U.S., generic pharmaceuticals, ingredients, and chemical precursors. Automobiles of Japanese origin also appear to be exempt from Section 232 tariffs and will follow the 15% tariff cap guidance. In addition, Japan has committed to purchase $8 billion in U.S. agricultural goods, another $7 billion in energy, and to increase its imports of American rice by 75%.

Meanwhile, the Annex II list of tariff numbers generally excluded from reciprocal tariffs has been revised. A few ores and minerals, salts, and LEDs were added to the list of excluded items, while aluminum hydroxide, primary silicone, and certain polyacetals and resins under 3907 were removed—effective immediately.

The White House Wire is also citing a new article reporting the largest monthly haul of tariffs, at $31.4 billion for August, reflecting nearly 4x year-over-year growth in tariff revenue.