Japan’s Trade Minister, Ryosei Akazawa, has cautioned against any tariff adjustments that could place Japan in a less favourable position than it currently holds under the existing Japan-US trade agreement established last year. This warning was issued during a phone conversation with US Commerce Secretary Howard Lutnick, amidst preparations for a fresh wave of US tariffs set to be implemented.
During their 40-minute phone call on Monday evening, Akazawa and Lutnick reaffirmed the commitment of both nations to collaborate closely. Their goal is to ensure the rapid and seamless execution of initiatives falling under a $US550 billion investment mechanism. This mechanism was a key component of the trade deal established between Japan and the United States.
According to a statement released by Japan’s trade ministry, Minister Akazawa emphasised that Japan’s position should not be negatively impacted by the US government’s rollout of new tariff measures. This references an agreement where Japan committed to establishing the $US550 billion investment vehicle, while the US reduced tariffs on auto imports from Japan to 15 per cent from 27.5 per cent.
The statement reveals ongoing uncertainty regarding US trade policies, which emerged almost a year after former President Donald Trump initially proposed various duty levels. Following a Supreme Court decision that deemed Trump’s reciprocal tariffs unlawful, the administration announced a 10 per cent levy set to commence on Tuesday morning, with subsequent threats to raise the rate to 15 per cent.
