Japan's Minister of Economy, Trade and Industry, Ryō Akazawa, issued a warning to US Secretary of Commerce Howard Lutnick during a phone call, cautioning against any tariff measures that could leave Japan in a worse position than under the trade agreement reached between the two countries last year. This statement comes as a new round of US tariffs is set to take effect.
Akazawa spoke with Lutnick on Monday evening, and both sides agreed that Japan and the US will work closely to ensure the swift and smooth implementation of related projects under the $550 billion investment mechanism. According to a statement from Japan's Ministry of Economy, Trade and Industry, the call lasted approximately 40 minutes.
"The Minister also stated that, as the US government introduces new tariff measures, Japan's situation should not be worse than it was under last year's Japan-US agreement," the statement said. Under last year's agreement, Japan consented to establish a $550 billion investment fund for the US, while the US reduced its tariff on Japanese auto imports from 27.5% to 15%.
The statement indicates that confusion surrounding US trade policy persists nearly a year after threats of reciprocal tariffs began shortly after the new administration took office in January 2025. Following a US Supreme Court ruling that deemed the previous administration's reciprocal tariffs illegal, the current administration announced that a 10% tariff would be imposed starting early Tuesday. Subsequently, further threats were made to raise the tariff to 15%.
On the surface, the latest developments from the White House are unlikely to impose harsher conditions on Japan, as Japanese products are already subject to a 15% US import tariff.
Comments