Japan to Scrutinize Impact of Trump's New Tariffs
Japanese government on Tuesday (February 24) expressed its intention to scrutinise the impact on Japanese industries of US President Donald Trump's new tariffs, which may put higher levies on some items than under a bilateral trade agreement struck last year.
The new tariffs were abruptly announced after the US Supreme Court ruled his reciprocal tariffs unconstitutional on Friday.
Tokyo plans to stress its policy of steadily implementing its pledge to spend US$550 billion on investments and loans in the United States, a pillar of the trade deal, and call on Washington to implement the agreement.
In a 40-minute phone meeting with US Commerce Secretary Howard Lutnick on Monday, Japanese trade minister Ryosei Akazawa urged the United States to ensure that Japan is not treated less favourably under Trump's new tariffs than under last year's trade deal.
The two also affirmed that their nations will work on the sincere and prompt implementation of the Japan-US agreement.
"Some items with (a reciprocal tariff rate of) 15 per cent may be subject to additional tariff burdens," Akazawa said at a press conference on Tuesday, voicing his intention to make arrangements to ask the US side to follow the agreement.
Under the trade deal, a special provision was established to raise the reciprocal tariffs on Japanese products to 15 pct for items for which the existing levies are less than 15 pct and to maintain the existing rates on items that are already subject to tariffs of 15 pct or higher.
The new tariff measure does not clarify whether the special provision would be applied, raising the possibility that an additional 10 per cent may be added on top of the existing tariff rates and that Trump may increase the new tariff rate to 15 per cent.
Meanwhile, Agriculture, Forestry and Fisheries Minister Norikazu Suzuki said at a press conference on Tuesday that designated agricultural products are expected to remain exempt from the US tariffs, giving examples such as beef and green tea.
But it is unclear how the new levies would affect products other than the designated goods.
Sector-specific tariffs, including those on the automobile industry, a sector that has a significant impact on Japan, are not directly affected by the latest court decision.
The Japanese side believes that its investment pledge may help the US side decide not to raise sector-specific tariffs even further.
"Our country will steadily implement" the proposed investments and loans, Japanese Chief Cabinet Secretary Minoru Kihara said.
[Copyright The Jiji Press, Ltd.]
