Japan-U.S. Tariff Negotiations: Both Countries Should Seek a Mutually Beneficial Path

Editorial

15:08 JST, April 18, 2025

The Japan-U.S. negotiations are apparently off to a safe start. Both Japan and the United States need to clarify their positions and then seek a mutually beneficial path.

The administration of U.S. President Donald Trump has implemented high tariffs on automobiles and other products, plus “reciprocal tariffs,” one after another. To respond, Japan’s economic revitalization minister Ryosei Akazawa attended the first round of negotiations with the United States in Washington.

Immediately before the meeting, Trump abruptly announced that he would attend it personally. After meeting with Trump for about 50 minutes, Akazawa held ministerial-level talks with U.S. Treasury Secretary Scott Bessent and others for an additional 75 minutes. During the talks, they confirmed that Japan and the United States will aim to achieve an agreement soon.

At a press conference following the meeting, Akazawa said Trump had told him that talks with Japan were a top priority. Trump wrote in a social media post, “Big Progress!”

Trump may be aiming to gain an advantage in the talks with Japan by demonstrating a U.S. stance of emphasizing Japan, thereby giving momentum to negotiations with other countries.

It is quite natural that Akazawa demanded the United States review the tariff measures. If Trump aims to bring manufacturing industries back to the United States through his tariff policy, he should not adopt measures that would undermine the willingness of Japanese companies to invest in the United States.

Although neither Japan nor the United States have made details of the negotiations clear, it is believed that the United States sought tariff reductions on agricultural and other products. It is also possible the U.S. side may have argued that there are “non-tariff barriers” in the automobile sector.

Under the Japan-U.S. trade agreement, which took effect in 2020, Japan has reduced tariffs on agricultural products to the same level as those under the Trans-Pacific Partnership free trade framework. It can be said that it would be difficult for Japan to make further concessions.

It is also hard to understand the U.S. stance of trying to position automobile safety standards and others as non-tariff barriers.

To strengthen its negotiating power, Japan needs to increase the number of like-minded countries that adhere to the free trade system. Strengthening cooperation with TPP member countries and the European Union would also be an idea.

Security issues were also on the agenda. Trump reportedly told Akazawa repeatedly about his theory that it is unfair that only the United States is obligated to defend Japan.

Japan provides bases to the United States under the Japan-U.S. Security Treaty and bears a larger cost of stationing U.S. troops on its territory than other U.S. allies do.

In recent years, Japan has purchased state-of-the-art defense equipment from the U.S. government at an annual cost of about ¥1 trillion. Japan should persistently convey to the U.S. government that its contribution in the defense sector has been increasing, and then work to strengthen its defense capabilities as its own policy.

(From The Yomiuri Shimbun, April 18, 2025)