Trump signs executive order to implement U.S.-Japan trade deal

U.S. President Donald Trump signed an executive order on Thursday implementing the U.S.-Japan trade agreement, which lowers tariffs on Japanese automobile imports and other products announced in July, the White House said.

"Under the Agreement, the United States will apply a baseline 15 percent tariff on nearly all Japanese imports entering the United States, alongside separate sector-specific treatment for automobiles and automobile parts; aerospace products; generic pharmaceuticals; and natural resources that are not naturally available or produced in the United States," the executive order said.

"Japan, meanwhile, will provide American manufacturing, aerospace, agriculture, food, energy, automobile and industrial goods producers with breakthrough openings in market access across key sectors," it added.

Japan is working towards an expedited implementation of a 75-percent increase in U.S. rice procurements and purchases of U.S. agricultural goods totaling $8 billion per year, according to the executive order.

It is also working to accept for sale in Japan U.S.-manufactured and U.S.-safety-certified passenger vehicles without additional testing.

Critically, Japan has agreed to invest $550 billion in the United States, the executive order stated.

Trump announced a framework agreement between the United States and Japan on July 22, saying it lays the foundation for a new era of U.S.-Japan trade relations grounded in principles of reciprocity and shared national interests.

(With input from agencies)