U.S.’ 25% Tariffs on Japan: Don’t Panic. Work to Make a Stronger Economy

Editorial

14:52 JST, July 9, 2025

With the international situation becoming increasingly severe, the importance of the Japan-U.S. alliance continues to grow. And yet, the United States is set to unilaterally impose high tariffs on Japan in an extremely reckless manner.

The Japanese government must stay calm and continue to negotiate, while also working out measures to strengthen the economy.

U.S. President Donald Trump has notified Japan that the United States will impose 25% tariffs on the country from Aug. 1. That is up from 24% in April, when he announced his “reciprocal tariffs.” The tariffs will cover all imports from Japan, with the exception of automobiles, on which a 25% tariff has already been imposed, and other products.

The United States said that it sent letters about the tariffs to a total of 14 countries, including South Korea, Malaysia and Thailand.

Washington imposed a blanket 10% reciprocal tariff on most countries and regions in April, but it suspended the application of the additional portion of the tariffs until July 9. It seems the United States’ tariff negotiations with other countries are not going smoothly. Extending the deadline by about three weeks may have been a last-ditch measure.

The Japanese government has held a series of ministerial-level talks with the United States since April, with economic revitalization minister Ryosei Akazawa visiting the country seven times. Japan has discussed with the United States proposals for both countries to develop together, such as through joint productions in the shipbuilding industry and through cooperation in building supply chains for semiconductors.

Deepening the Japan-U.S. alliance is significant in countering China, which has been strengthening its hegemonic moves. Under such circumstances, it is unacceptable for Washington to impose high tariffs without considering proposals made by Japan that could contribute to strengthening economic security.

Trump, who views trade deficits as problematic, is trying to bring manufacturing industries back to the United States and create jobs. He appears to be increasingly frustrated by Japan’s refusal to accept high tariffs on automobiles.

But the automobile industry, including related companies, supports about 5.5 million jobs and is the backbone of the Japanese economy. It is quite natural for Japan to demand the United States review its tariffs. It is hoped that the Japanese government will persist in negotiations.

However, some observers believe it will be difficult for the countries to come to an agreement by Aug. 1. If the United States insists on its high tariffs, Japan should not rule out the option of taking countermeasures.

At the same time, Japan needs to enhance the resilience of its economy in order to improve its hand in negotiations with the United States.

Japan will need to reduce its dependence on the United States as an export market by expanding sales channels to emerging and developing countries, such as India, those in Southeast Asia and Africa, where economic growth is expected. There should be great potential for Japan’s high-quality manufacturing.

Many of the countries that received the tariff letters are in Asia. It is also vital for Japan to work with these countries to press the U.S. government to review its high tariff policy.

(From The Yomiuri Shimbun, July 9, 2025)