Japan’s trade minister, Yoji Muto, stated this week that he was unable to secure guarantees from U.S. officials regarding Japan’s exemption from upcoming tariffs. Some of these tariffs are set to take effect on Wednesday.
Muto visited Washington for final negotiations over tariffs on various Japanese exports, including cars, steel, and aluminum.
During his visit, Muto emphasized that Japan, which plays a significant role in the U.S. economy through its investments and job creation, should not be subjected to the 25% tariffs imposed on steel, aluminum, and auto exports to the U.S.
His discussions with U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and White House economic advisor Kevin Hassett took place just days before the steel and aluminum tariffs are set to be implemented. President Donald Trump has also hinted that a 25% tariff on imported foreign cars could be enforced by early April.
Muto stated that U.S. officials acknowledged Japan’s contributions but did not grant Japan an exemption from the high import tariffs. While they agreed to continue discussions, they did not approve his request for exemption.
“We did not receive a response confirming Japan’s exemption,” Muto told the media. “We must keep pressing our case.”
Trump’s tariff threats have sparked tensions and retaliation vows from Canada, Mexico, and China. In response, Japan has been working to strengthen its relationships with other nations.
Last week, Japan’s foreign and trade ministers met with their British counterparts in Tokyo for their first “two-plus-two” economic dialogue. During this meeting, both parties agreed to support “fair, rules-based international trade,” though Trump was not directly mentioned.
Japan is heavily reliant on exports, particularly automobiles, which are its largest export, with the U.S. being the primary destination. The potential auto tariffs are a significant concern for Japan.
“Clearly, companies in Japan are very worried,” said Rintaro Nishimura, a political analyst with The Asia Group’s Japan Practice. “The auto industry is Japan’s crown jewel, especially with these tariffs on the horizon.” He added that the concern is heightened because the Trump administration is implementing these changes just two months after taking office.
Trump has also criticized Japan’s contributions to the defense arrangements between the two countries, further escalating tensions with Tokyo.
Muto mentioned that both sides agreed to continue discussions in order to create a “win-win” relationship that would serve the national interests of both nations.
Additionally, the two sides discussed energy cooperation, including the joint development of liquefied natural gas reserves in Alaska. This initiative was agreed upon during Prime Minister Shigeru Ishiba’s visit to the White House in February.