US-Japan Trade Agreement: Digital Trade Provisions Update
Effective Jan 1, 2026
Updated provisions under the US-Japan Trade Agreement expand duty-free treatment for digital products and services, plus new tariff reductions on agricultural products.
Overview
The US-Japan Trade Agreement continues to expand market access with new tariff reduction stages taking effect in 2026.
Agricultural Tariff Reductions
Japan has implemented new tariff reductions on US agricultural exports including:
- Beef: Further reduction toward 9% target rate
- Pork: Reduced gate price thresholds
- Cheese and dairy: Expanded quota volumes
Digital Trade
Both countries reaffirm commitments to:
- Zero tariffs on digital products transmitted electronically
- Non-discriminatory treatment of digital products
- Protection of source code and algorithms from forced disclosure
Impact for US Importers
Japanese goods entering the US may benefit from:
- Reduced tariffs on certain industrial and agricultural products
- Streamlined customs procedures
- Enhanced regulatory cooperation