The United States has officially implemented a trade agreement reached with Japan on July 22, taking tariff rates on automobiles and other goods lower while outlining Japan’s commitments in the deal.

In an executive order signed by U.S. President Donald Trump on Thursday, auto tariffs on Japan are set at 15%. The order instructs U.S. authorities to modify rates accordingly within seven days of publication in the Federal Register.

Trump signed the document on the day Ryosei Akazawa, Japan’s chief tariff negotiator, arrived in Washington for a 10th round of trade talks. A previous executive order established a 15% rate for "reciprocal" tariffs and became effective on Aug. 7, but the 15% rate on Japanese automobiles was not implemented at the same time.

The rate on passenger vehicles was initially taken by the second Trump administration to 27.5%, or 25% added to an existing 2.5%. The new rate covered in Thursday's executive order is 12.5% plus the 2.5% already in place, for a total of 15%.

Thursday’s order also adjusts the method used to calculate reciprocal tariffs on Japan set forth in the previous order, so for items with an existing tariff rate below 15%, the total duty including the reciprocal tariff will be capped at 15%. For items with an existing tariff above 15%, no additional tariff will be imposed. Additional duties already collected after the previous order went into effect will be refunded.

Initially, the 15% rate had been added to existing rates to take the total in some cases above 15%.

“We welcome this executive order as a steady implementation of the Japan-U.S. agreement reached on July 22,” Akazawa told reporters in Washington.

According to Thursday's order, Japan agrees to give American producers “breakthrough openings” into the Japanese market. Aerospace, agriculture, food, energy and automobiles are mentioned.

Japan will increase rice imports from the U.S. by 75% within the minimum access framework, under which 770,000 metric tons of rice goes into Japan duty-free each year. Japan imported 346,000 metric tons of rice from the U.S. under the framework in the last fiscal year — a 75% increase would equal 605,500 metric tons.

Japan will also purchase $8 billion of other agricultural products from the U.S. every year, including corn, soybeans, fertilizer and bioethanol, according to the order. Japan also agreed to purchase U.S.-made commercial aircraft and defense equipment.

Japan’s $550 billion investment pledge was described in the executive order as “unlike any other agreement in American history.”

“These investments — which will be selected by the United States Government — will generate hundreds of thousands of United States jobs, expand domestic manufacturing, and secure American prosperity for generations,” the order read.

“This is based on the idea of prioritizing investment over tariffs, which I have consistently advocated,” Prime Minister Shigeru Ishiba told reporters in Tokyo Friday morning.

“What is important now is that both Japan and the United States implement this agreement sincerely and without delay,” he added, while also noting that Akazawa delivered his letter to Trump inviting the U.S. president to visit Japan.

Two other documents were also signed, Akazawa said.

One is a memorandum of understanding outlining the $550 billion of investment Japan pledged in exchange for lower tariffs. The document was signed by Akazawa and U.S. Commerce Secretary Howard Lutnick.

“With this deal, Japan will provide President Trump with $550 billion to invest in American projects at the President’s direction to build out our national and economic security requirements,” Lutnick wrote in a post on social media platform X.

Akazawa maintained that nothing has changed from the July 22 agreement that Japan will provide up to that $550 billion total in investment, loans and loan guarantees.

The other document is a statement guaranteeing that Japan will not be placed at a disadvantage compared with other countries in terms of tariffs. That document also notes that no tariffs will be imposed on Japanese aircraft or aircraft parts, Akazawa said.

Stocks rallied in Tokyo at the open Friday morning after news of the deal broke, with the Nikkei 225 stock average up more than 1%, but the benchmark index drifted down later in the morning.

The executive order specified that the commerce secretary will monitor Japan’s progress in implementing the deal, and that the president can further modify the order if Japan fails to deliver what it has promised.

“Even with the executive order and the memorandum putting matters in writing, this divergence in perception remains unresolved,” wrote Takahide Kiuchi, executive economist at Nomura Research Institute, in a report on Friday.

“Going forward, there is concern that such friction could surface between the two countries, and that the Trump administration might scrap the Japan-U.S. tariff agreement and raise tariff rates to 25%.”