Japan Raises Concerns Over U.S. Auto Tariffs, Cites Inconsistencies with 2019 Trade Deal

Japan has voiced concerns over the new auto tariffs imposed by President Donald Trump, highlighting perceived inconsistencies with a 2019 trade deal signed between the U.S. and Japan.

Prime Minister Shigeru Ishiba emphasized Japan’s commitment to the agreement but expressed dissatisfaction with the potential impact of the new tariffs.

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The U.S. tariffs, which will impose a 25% duty on imported vehicles starting April 3, 2025, and additional duties on auto parts in May, have raised concerns in Japan. While the 2019 U.S.-Japan trade deal focused on reducing tariffs for U.S. farm products and Japanese machinery, it did not address the issue of auto trade.

At the time, former Prime Minister Shinzo Abe received assurances from President Trump that no further tariffs would be imposed on Japanese car imports.

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Ishiba voiced his government’s concerns in a parliamentary statement, saying, “Japan has grave concern over the consistency” between the new tariffs and the 2019 bilateral agreement. Despite the growing tension, Ishiba clarified that Japan has no plans to terminate the agreement, which remains central to the countries’ trade relations. He added, “We will continue to convey our stance (to the U.S.) from this standpoint.”

In addition to addressing the tariffs, Japan’s trade negotiator, Ryosei Akazawa, visited Washington last week to engage in discussions on various trade matters, including non-tariff barriers and currency issues.

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Finance Minister Katsunobu Kato is scheduled to meet U.S. Treasury Secretary Scott Bessent this week, underscoring Japan’s proactive diplomatic approach.

The outcome of ongoing discussions will likely have significant implications for the future of U.S.-Japan trade relations, particularly for Japan’s auto sector, which is a crucial part of its economy. The resolution of these trade disputes could also impact Japan’s broader export strategy as the country navigates the evolving landscape of U.S. trade policy.

Source: Reuters