Congress Weighs Oversight of US-Japan Critical Minerals Agreement – Legis1

The 2023 U.S.-Japan critical minerals agreement took effect immediately upon signature without congressional approval and changed neither U.S. law nor existing tariffs, according to a new Congressional Research Service (CRS) report. ​
The agreement covers cobalt, graphite, lithium, manganese and nickel, key inputs for electric vehicle (EV) batteries. Congress now faces questions about whether to authorize sectoral agreements of this kind, set negotiating objectives, and decide how to exercise oversight of the President’s authority to negotiate with Japan on critical minerals.
Section 70502 of the One Big Beautiful Bill Act (P.L. 119-21) terminated the EV tax credit from Sept. 30, 2025.
The United States has 14 congressionally approved comprehensive free trade agreements with 20 countries, however Japan is not among them, and the Trade Promotion Authority expired in 2021. During the first Trump administration, the United States and Japan signed the 2020 U.S.-Japan Trade Agreement, which reduced tariffs on some goods but not in the automotive or critical minerals sectors.
The Inflation Reduction Act of 2022 (P.L. 117-169) had provided consumers a tax credit of up to $7,500 for new EVs, with sourcing requirements tied to U.S. free trade agreement partners and restrictions on foreign entities of concern such as Russia and China.
In 2024, the U.S. Department of the Treasury designated the critical minerals agreement as a free trade agreement for purposes of that credit, drawing criticism from some members of Congress who said the designation overrode congressional trade authorities.
The U.S. ran a $48.5 billion deficit in vehicles and parts trade with Japan in 2025. Under Section 232 of the Trade Expansion Act of 1962, the Trump administration imposed a 15% tariff on Japanese automotive products, and as of July a 12.5% tariff applies to most Japanese goods.
Three bills address congressional oversight of these agreements:
H.R. 7037 passed the House on June 8 and awaits action by the Senate Committee on Foreign Relations; no floor vote has been scheduled.
Access the Legis1 platform for comprehensive political news, data, and insights
Spot something wrong? Report an issue with this article
Have a question about this article? Contact [email protected].
Learn more about Legis1’s editorial process.
Daily alerts, reports, and insights customized to your issues, network, and organization

source