U.S. Refuses Full Tariff Exemption for Japan, 14% Reduction Offered

In recent negotiations, the United States has refused to fully exempt Japan from its "reciprocal" tariffs and specific tariffs on certain countries. According to unnamed sources, U.S. officials, including Treasury Secretary Steven Mnuchin, met with Japan's chief negotiator, Hiroshi Kajiyama, in Washington last week. During the meeting, they stated that the Trump administration intends to reduce only 14% of the specific country tariffs, which are suspended until early July.

The U.S. emphasized in the second round of talks that it would only consider extending the 90-day suspension or reducing the 14% tariff based on the progress of the negotiations. Tokyo has been seeking the complete cancellation of reciprocal tariffs, 25% tariffs on automobiles, and 25% tariffs on steel and aluminum from the U.S.

Washington has previously stated that it would not negotiate on the global 10% base tariff or tariffs on automobiles and steel products. The U.S. implemented a 25% tariff on key automotive components, effective May 3. In response, Japan has continued to strongly oppose the U.S. tariff policy.

Japanese Prime Minister Yoshihide Suga expressed regret over the U.S. decision to impose a 25% tariff on key automotive components, stating that Japan would continue to urge the U.S. to reconsider the tariff measures. Japan is currently in negotiations with the U.S. regarding tariffs on automobiles, steel, and aluminum. The two countries have differing stances and have yet to reach a consensus.

Following the second round of U.S.-Japan trade talks, Hiroshi Kajiyama, Japan's Minister of Economy, Trade, and Industry, returned to Japan and briefed reporters at the airport about the negotiations. Kajiyama expressed concern over the U.S. tariffs on automobiles, automotive components, steel, and aluminum, as well as the so-called "reciprocal tariff" policy. He stated that Japan would continue to strongly urge the U.S. to cancel these tariffs.

During the second round of talks, Japan reiterated its strong request for the U.S. to reconsider its tariff measures. However, the U.S. maintained its stance that it could not provide Japan with "special treatment" on automobiles, steel, and other products. The negotiations between the two countries are ongoing, with both sides seeking a mutually beneficial agreement. The outcome of these talks will have significant implications for the economic relationship between the U.S. and Japan, as well as for the global trade landscape.