First Additional Tariffs Imposed on Japan
Since Donald Trump’s Return to Power
On the 12th (local time), the U.S. government imposed a 25% tariff on steel, aluminum, and their derivative products, including those exported from Japan to the United States. The Japanese government expressed regret that Japan was not excluded despite requesting exemption.
On the 11th, Kyodo News and Nihon Keizai Shimbun (Nikkei) reported that this is the first time since President Donald Trump’s return to power that the U.S. has applied additional tariffs on Japanese imports.
During the administration of former U.S. President Joe Biden in 2021, Japan and the U.S. agreed to allow tariff-free exports of steel products up to 1.25 million tons annually. Nikkei analyzed that although steel and aluminum do not constitute a large share of Japan’s exports to the U.S., there are concerns that if derivative products become subject to tariffs, it could impact Japanese companies. Last year, Japan’s steel product exports to the U.S. amounted to 302.6 billion yen (approximately 3 trillion won), and aluminum exports were 24.5 billion yen (approximately 24 billion won).
The Japanese government expressed regret over the tariff measures and stated it will continue close communication with the U.S. At a press conference in the afternoon, Chief Cabinet Secretary Yoshimasa Hayashi said, “It is regrettable that additional tariffs have begun to be imposed in a form that excludes Japan despite our request for exemption.”
He emphasized that Japanese steel and aluminum products do not adversely affect U.S. national security and are difficult to replace, adding, “They also make significant contributions to U.S. industry and employment.” Regarding the U.S. policy of strengthening tariffs, he stated, “It could have a major impact on the economic relationship between Japan and the U.S., the global economy, and the entire multilateral trade system.”
However, he avoided giving specific answers about the planned U.S. automobile tariffs and Japan’s retaliatory tariffs, saying, “Japan and the U.S. are in close consultation.”
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