Japan not budging from demands for U.S. tariff elimination, trade negotiator says

Published 20/05/2025, 09:04
© Reuters.

Investing.com - Japan has not shifted from its position of demanding that the U.S. remove tariffs in bilateral trade discussions, the country’s top trade negotiator Ryosei Akazawa said on Tuesday.

Although the Trump administration has moved to delay elevated "reciprocal" levies on a host of countries, including longstanding ally Japan, baseline 10% duties and tariffs on items like steel, aluminum and auto parts remain in place.

By some economists’ estimates, even after the pause to President Donald Trump’s punishing levies, the effective U.S. tariff rate now stands at its highest level since the 1930s.

Speaking at a press conference, Akazawa said the reciprocal tariffs as well as the trade taxes on specific products are "regrettable".

Japan has specifically said that there is no merit in reaching an agreement with Washington unless the tariffs, particularly a 25% levy on autos and car parts, are eliminated. The auto industry is seen as crucial for Japan’s economy.

Akazawa flagged that there has been "no change" to Tokyo’s stance on the matter.

U.S. and Japanese officials held working-level discussions in Washington on Monday, Akazawa said, adding that the schedule for a third round of ministerial negotiations has yet to be determined.

Even though it was one of the first nations to approach the U.S. after Trump first announced the reciprocal tariffs on April 2, Japan has not been able to secure a deal with the White House. A pause to a U.S. tariff rate of 24% on Japan is due to end in July, barring an agreement.

Treasury Secretary Scott Bessent is due to speak with Japanese counterparts at a meeting of Group of Seven finance ministers in the Canadian province of Alberta this week, but further trade negotiations will take place in Washington, according to media reports.

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