Japan-U.S. Tariff Documents: Dispelling Uncertainty is Worthy of Praise

Editorial

15:37 JST, September 6, 2025

Concerns regarding any discrepancies about the Japan-U.S. tariff negotiations have been resolved as written documents have clarified the agreement that was reached. It is hoped that the two countries will deepen new industrial cooperation and solidify the path toward mutual development.

U.S. President Donald Trump has signed an executive order on Japan-U.S. tariff measures. A joint statement on the tariff agreement and a memorandum of understanding regarding Japan’s $550 billion (about ¥80 trillion) in investment in the United States were also released.

The tariff rate on passenger vehicles imported by the United States from Japan will decrease from 27.5% to 15%. The automobile tariff reduction is expected to take effect within the month.

In addition, regarding “reciprocal” tariffs, a 15% tariff rate will be applied to nearly all products exported to the United States from Japan.

The Japan-U.S. tariff negotiations concluded on July 22. However, documents subsequently released by the United States indicated that special measures for tariffs granted to the European Union would not apply to Japan, raising concerns that some products could face tariffs exceeding 15%. The timing for lowering tariffs on automobiles also remained undecided.

For this reason, the Japanese government argued that excluding Japan from the special measures contradicted the agreement and requested the U.S. side to make revisions. It also pressed Washington to reduce automobile tariffs early.

It is commendable that the two countries compiled the documents this time to clarify the agreement and dispel uncertainty. This will make it easier for Japanese companies, including those in the automobile industry, to formulate investment plans in the United States and business strategies.

Meanwhile, Japan clarified that it will increase imports of U.S. rice by 75% within the framework of a duty-free import quota based on the system called “minimum access.” This is a reasonable decision.

The method for which Japan will make its large investment in the United States, a focal point of the negotiations, was specified in the memorandum. The Japanese side had previously explained this as a financial support framework involving investment, loans and loan guarantees from government-affiliated financial institutions, such as the Japan Bank for International Cooperation.

According to the memorandum, Trump will select investment projects based on recommendations from an investment committee formed by the U.S. side. A mechanism has also been established in which a consulting committee, formed by Japan and the United States, will discuss the matter with the U.S. investment committee, allowing the Japanese side to participate in the selection process.

It will be crucial for Japan and the United States to carefully discuss it so that these projects can build a mutually beneficial relationship.

Any “profits” generated from the projects will be distributed 50-50 between the two countries for the time being. After a certain period of time, the U.S. side will receive 90% of the profits. Bearing the end of Trump’s second term in mind, investments will be made as necessary until Jan. 19, 2029.

There are many areas in which Japan and the United States should deepen their relationship from an economic security perspective, including semiconductors, steel and iron, shipbuilding, critical minerals and energy. It is important to maintain close communication and link such efforts to economic cooperation for a new era.

(From The Yomiuri Shimbun, Sept. 6, 2025)