
US-Japan Trade Tensions Escalate: Trump Imposes Aggressive 24 Percent Tariffs Amid Ongoing Bilateral Negotiations
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Just this week, sources close to the negotiations told Kyodo News that the United States has refused to grant Japan a full exemption from the new 10 percent so-called "reciprocal" tariff, as well as a country-specific tariff that affects a broad range of goods. In recent talks in Washington, Treasury Secretary Scott Bessent told Japan’s lead negotiator, Ryosei Akazawa, that the Trump administration will only consider either extending the 90-day suspension or possibly lowering the current 14 percent tariff, now in place until early July. Japan had hoped for a complete removal of the new levies, especially the punishing 25 percent duties on cars and steel and aluminum products, but the United States signaled only incremental concessions are up for discussion.
The U.S. position reflects President Trump’s broader "America First" doctrine. According to the latest tracker published by the Trade Compliance Resource Hub, Japan currently faces a 24 percent reciprocal tariff on virtually all products, with this rate delayed but expected to take effect July 9—unless ongoing negotiations yield relief. This is a staggering increase compared to only a few months ago, when U.S. tariffs on Japanese goods were much lower.
These new duties are part of a sweeping approach implemented this spring. As outlined by the White House, President Trump invoked the International Emergency Economic Powers Act to levy a universal 10 percent tariff on all imports, effective April 5. Moreover, countries like Japan with large trade surpluses with the United States were hit with even higher, individualized "reciprocal" tariffs—up to 24 percent for Japan. These stricter measures will remain until, in President Trump’s words, the “threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied.”
On the Japanese side, Prime Minister Shigeru Ishiba has described the tariff shock as a national crisis. Despite Japan’s longstanding zero-tariff policy for imported passenger vehicles, which theoretically allows U.S. cars to enter without duties, American automakers have long complained of regulatory and consumer barriers that outweigh any benefit from Japan’s open tariff schedule. The new U.S. tariffs, especially the 25 percent rate on vehicles imposed in April, have dramatically altered this delicate balance and provoked anxiety among exporters and Japanese policymakers alike.
The economic impact is already being felt. Bilateral trade between the U.S. and Japan reached $58 billion during the first quarter of this year, but business groups warn that the uncertainty and added tariffs may cost Japan up to 0.8 percent of its annual economic growth, while markets have reacted sharply to the instability.
That wraps up today’s headlines on U.S.-Japan tariffs. Thank you for tuning in. Don’t forget to subscribe so you never miss an update on the evolving trade landscape.
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