Implementing The United States–Japan Agreement
Summary
This executive order implements the United States-Japan Agreement, which aims to level the playing field for American producers and address national security needs. It establishes a new tariff framework, with a baseline 15% tariff on most Japanese imports, and specific treatment for certain sectors. Japan commits to increased purchases of US goods and significant investments in the United States.
Expected Effects
The order will likely lead to changes in trade flows between the US and Japan. It will also affect domestic industries through tariff adjustments and increased Japanese investment. The agreement intends to reduce the US trade deficit and strengthen the manufacturing and defense industrial base.
Potential Benefits
- Increased US exports to Japan, particularly in agriculture, manufacturing, and aerospace.
- Significant Japanese investment in the US economy, potentially creating jobs and expanding domestic manufacturing.
- Reduced trade deficit with Japan, leading to a more balanced trade position.
- Strengthened US manufacturing and defense industrial base.
- Removal of certain tariffs on aerospace products from Japan, potentially benefiting the aerospace industry.
Potential Disadvantages
- Increased costs for US consumers due to tariffs on Japanese imports.
- Potential for retaliatory measures from Japan if the US fails to uphold its commitments.
- Possible disruptions to supply chains due to tariff adjustments.
- Uncertainty regarding the selection process for Japanese investments in the US.
- The agreement relies on Japan fulfilling its commitments, which may not fully materialize.
Constitutional Alignment
The executive order cites the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act, section 232 of the Trade Expansion Act of 1962, section 604 of the Trade Act of 1974, and section 301 of title 3, United States Code as its legal basis. These acts delegate authority to the President to take actions related to trade and national security. The Constitution grants Congress the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3), but Congress has delegated some of this power to the executive branch through the cited legislation. The use of executive orders in trade policy has been a subject of debate, particularly regarding the separation of powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).