▲ Trump Administration Maintains Tariffs, Japan Reaffirms Its Position
Since 2018, the United States has imposed tariffs on imported steel and aluminum under Section 232 of the Trade Expansion Act of 1962, citing national security concerns. While several countries, including the European Union and South Korea, have secured exemptions through quota-based arrangements, Japan has yet to receive similar treatment. In early 2025, the re-elected Trump administration not only upheld the existing tariffs but also reimposed a 25% tariff on Japanese steel and automotive products. Most other Japanese goods now face a temporary 10% tariff, further burdening Japanese exporters.
Against this backdrop, Kazuhito Yamashita, the Japanese Prime Minister’s Special Representative, visited Washington recently to meet with officials from the National Economic Council and the Office of the U.S. Trade Representative. He reiterated Japan’s call for the removal of the tariffs.
▲ Japan Pursues Pragmatic Strategy, Pushes for Fourth Round of Trade Talks
Despite the unresolved tariff issue, the Japanese government continues to pursue a diplomatic approach. According to a Reuters report on May 23, Japan’s Chief Trade Negotiator Ryosuke Akazawa is scheduled to visit the U.S. on May 30 for a fourth round of high-level trade talks with U.S. Treasury Secretary Scott Besant.
During the negotiations, Japan is expected to offer several areas of cooperation, including mutual recognition of automobile certifications, streamlined agricultural imports, and collaboration on semiconductor supply chains. In return, Japan seeks a gradual removal of U.S. tariffs on its key exports such as steel and automobiles.
▲ Tariffs Take a Toll as Bilateral Trade Faces Pressure
The impact of the tariffs is already visible in Japan’s export performance. According to the Japanese Ministry of Finance, exports to the U.S. fell by 1.8% year-on-year in April 2025, with auto exports down 4.8%. Analysts attribute this decline not only to the appreciating yen and weakening global demand but also to the new U.S. tariff measures.
Domestically, some U.S. industry groups have also voiced concerns about the tariffs, arguing that they offer limited protection for American manufacturers while increasing costs for downstream industries. This opens a potential window for Japan to push for policy adjustments.
▲ Outlook: Negotiation Remains Key
In today’s interdependent global economy, unilateral protectionist trade policies are difficult to sustain. While the Trump administration remains committed to defending domestic industries, allied nations like Japan are seeking mutually beneficial outcomes through diplomatic dialogue.
For Japan, continuing to engage in both bilateral and multilateral negotiations—while balancing strategic concessions with national interests—will be central to its U.S. trade policy. Whether the upcoming round of talks leads to a breakthrough will likely determine the future trajectory of Japan-U.S. economic relations.
