Japan's Akazawa Presses U.S. for Swift Auto Tariff Cut from 27.5% to 15%

Ryosei Akazawa, Japan’s chief tariff negotiator and minister in charge of economic revitalization, arrived in Washington today to advocate for a swift implementation of the recently finalized U.S.-Japan trade agreement, which seeks to lower import tariffs on Japanese automobiles from 27.5% to 15%. The visit follows eight rounds of negotiations and represents a critical step in ensuring the U.S. honors its commitments under the deal [1]. During a session of Japan’s House of Councillors Budget Committee, Akazawa stated he would push for the U.S. administration to issue the necessary executive order without delay [2]. His visit, expected to last until Saturday, aims to confirm the U.S. will adhere to the agreed-upon terms and avoid complications such as overlapping tariffs that could hinder Japanese exports [3].

This marks Akazawa’s first official trip to the U.S. since the deal was announced in late July. The timing is crucial, as Japan seeks to secure concrete benefits before any potential delays in tariff reductions could harm its export-driven economy. Prime Minister Shigeru Ishiba has expressed concern over ensuring the new agreement aligns with the existing Japan-U.S. Trade Treaty, which became effective in 2020 [4]. The government is also considering a fact sheet to clarify the terms of the new arrangement and address public and business concerns.

Akazawa emphasized that Japanese exports subject to more than 15% tariffs should be exempt from the additional levy. However, concerns remain within Japan about the adequacy of the revised deal in mitigating the economic impact of higher tariffs. For instance, Yuichiro Tamaki, leader of the Democratic Party for the People, warned that the agreement may not be sufficient to counter potential economic headwinds [1]. Meanwhile, Yoshihiko Noda, leader of the Constitutional Democratic Party of Japan, urged the deal be formalized in writing and signed publicly, similar to a bilateral summit. He also called for an economic stimulus package to cushion any fallout from trade adjustments [4].

The U.S. response will be closely monitored by both governments and industry stakeholders. Swift implementation of the tariff cuts is seen as vital for easing pressure on major Japanese automakers such as Toyota and Honda, which rely heavily on U.S. market sales. Ishiba has directed government task forces to take all necessary measures to offset the impact of U.S. tariffs, noting that Japan’s economy, which is driven by exports, is likely to face a period of slower growth [4]. A day after the trade agreement, the U.S. announced a $8 billion deal for Japanese imports of agricultural and food products, as well as a commitment to increased U.S. defense equipment and Boeing aircraft purchases.

Akazawa’s visit highlights the strategic importance of the U.S.-Japan economic relationship at a time when global trade dynamics remain volatile. Both sides are keen to maintain a stable and cooperative framework that benefits their mutual economic interests. The success of this trip could reinforce the momentum in the bilateral trade relationship and set a precedent for future agreements [6].

Source:

[1] Reuters – [https://www.reuters.com/business/japan-trade-negotiator-visit-us-press-swift-implementation-auto-tariff-deal-2025-08-05/](https://www.reuters.com/business/japan-trade-negotiator-visit-us-press-swift-implementation-auto-tariff-deal-2025-08-05/)

[2] nippon.com – [https://www.nippon.com/en/news/yjj2025080500075/](https://www.nippon.com/en/news/yjj2025080500075/)

[3] Anadolu – [https://www.aa.com.tr/en/asia-pacific/japan-seeks-swift-cut-to-us-auto-tariffs-following-trade-deal/3650675](https://www.aa.com.tr/en/asia-pacific/japan-seeks-swift-cut-to-us-auto-tariffs-following-trade-deal/3650675)

[5] MarketScreener – [https://www.marketscreener.com/news/japan-trade-negotiator-akazawa-will-visit-us-from-tuesday-ce7c5edbd881f72c](https://www.marketscreener.com/news/japan-trade-negotiator-akazawa-will-visit-us-from-tuesday-ce7c5edbd881f72c)

[6] Bloomberg – [https://www.bloomberg.com/news/articles/2025-08-05/japan-s-akazawa-to-visit-us-to-press-on-car-tariff-cut-timing](https://www.bloomberg.com/news/articles/2025-08-05/japan-s-akazawa-to-visit-us-to-press-on-car-tariff-cut-timing)