New US-Japan Agreement! Auto Tariffs Cut to 15%, Global Trade New Rules Effective August 1

On July 23, US President Trump grandly announced on Truth Social: "We just reached a massive agreement with Japan, possibly the biggest agreement ever!" The landing of the US-Japan 15% reciprocal tariff agreement is like pushing over the first domino, triggering a chain reaction in the global trade chain.

15% Tariff Breakthrough

Tariff Clauses

▸ The United States imposes a 15% reciprocal tariff on Japanese exports (including automobiles and agricultural products), with auto tariffs reduced from 25% to 15%. ▸ Japan opens its market to the United States, covering automobiles, trucks, rice, and other agricultural products.

Investment Commitment▸ Japan will invest $550 billion in the United States, with the US receiving 90% of the profits. ▸ Trump stated that "hundreds of thousands of jobs" are expected to be created.

Effective Date▸ US Commerce Secretary Lutnick confirmed August 1 as the "hard deadline" for tariff effectiveness; countries can still negotiate afterward but must pay tariffs. ▸ Small countries' benchmark tariffs may be 10%, while large economies need to "open markets or pay fair tariffs."

Trump hinted at a rapidly expanding negotiation landscape when announcing the agreement: "Tomorrow Europe will join the negotiations, and the day after tomorrow, other countries."

Global Market Reaction

JapanJapanese auto stocks surged in response:Toyota soared 15%, Honda rose 11%, and Mazda surged 17%.

The market reacted so strongly because automobile exports are a pillar of the Japanese economy. In June this year, Japan's auto exports to the US had already plummeted by 26.7%, making the agreement a timely relief.

European UnionFacing the US threat of 30% tariffs, the EU showed a tough stance. On July 23, the EU announced it would merge its two previous retaliation lists into a single counter-list worth 93 billion euros, covering key goods such as bourbon whiskey, aircraft, and soybeans.

This list is expected to take effect on August 7, but the EU can extend the suspension period, leaving room for negotiation.

Although countries can continue to negotiate after the tariffs expire, new tariffs will automatically take effect then. Lutnick specifically stated: small countries' benchmark tariffs may be 10%, while "larger economies either open themselves up or pay fair tariffs to the United States."

Challenges Facing China

For Chinese enterprises, the situation is even more severe. Trump's new tariff policy has dealt a huge blow to Chinese exporters. If no agreement is reached after August 12, tariffs will consist of a benchmark tariff of 10% + reciprocal tariff of 34% + industry-specific taxes.

In particular, the US previously introduced two precise strikes:

1.Cancellation of the tax exemption policy for packages under $800, leading to a 30%-50% increase in direct mail costs for cross-border e-commerce.

2.Strict inspection of origin, using AI + satellite traceability systems to combat transit trade, with an additional 60% punitive tariff for violators.

In the face of such high pressure, Chinese enterprises are breaking through in multiple ways.

Regionalized production layout: leveraging Mexico (USMCA zero tariffs), Philippines (PEZA park 5-year tax exemption)

Market diversification: expanding into emerging markets such as Latin America (Mercado Libre) and Southeast Asia (Shopee)

More enterprises are accelerating the transfer of production capacity to Mexico and Southeast Asia, and an industrial migration is fully underway, driven by tariffs.

Shengshi Group is with you

This tariff game will eventually arrive. When the bell tolls in August, the wave of global supply chain restructuring is already irreversible.

At this moment, you need us to escort you.

We specialize in US end-to-end customs clearance and transit, Amazon FBA logistics, and one-stop third-party warehouse services, headquartered in Los Angeles. As a local US customs brokerage firm, we have over 50 years of customs clearance experience and our own team of green card Chinese customs clearance professionals. We have the latest news and first-hand information to help you avoid pitfalls and achieve comprehensive cross-border e-commerce business development.

In this challenging tariff environment, choosing us means choosing professionalism, efficiency, and peace of mind. Shengshi Group will go all out to escort your goods with professional capabilities, helping you move steadily forward in the complex and ever-changing international trade market, overcome difficulties together, and open up a broader business landscape!