U.S. Investigations for High Tariffs: Move Fuels Fear of Widening Global Economic Turmoil

Editorial

14:25 JST, March 17, 2026

Amid escalating tensions in Iran, the United States has launched investigations with the aim of introducing new high-tariff policies. The excessive imposition of high tariffs — a move that could accelerate inflation and potentially damage Japan-U.S. relations — should be restrained.

The office of the U.S. Trade Representative is conducting investigations aimed at imposing punitive tariffs under Section 301 of the Trade Act.

In February, the U.S. Supreme Court ruled that the so-called reciprocal tariffs imposed by the administration of U.S. President Donald Trump on a wide range of countries were illegal. In response, the U.S. government invoked a different law to impose an alternative 10% tariff.

However, this law has a 150-day time limit. This is likely why the Trump administration decided to use Section 301, which allows for a more stable imposition of tariffs.

There is no upper limit on tariff rates under Section 301, which allows a long duration of four years. One cannot help but be concerned about the indiscriminate imposition of high tariffs and the expansion of their application.

The investigation that began on March 11 covers 16 countries and regions, including Japan, China and the European Union. The U.S. administration argues that these economies have recorded massive trade surpluses due to overproduction, thereby damaging the U.S. manufacturing sector.

A separate investigation launched on March 12 targets 60 countries and regions, criticizing them for allegedly using forced labor to keep production costs down, thereby undermining the competitiveness of U.S. products. Many of the targets are developing countries such as Vietnam, but Japan and the EU are also included.

From Japan’s perspective, the allegations in both investigations are difficult to comprehend.

To begin with, during the period of Japan-U.S. trade friction in the 1980s and 1990s, the United States repeatedly invoked Section 301 against Japan to force concessions. Japan strongly resented this unilateral behavior by the United States.

Given this history, the two nations have now established a division of work between their industries and maintain a complementary relationship. Trade friction is not currently a major concern. Forced labor is an issue frequently raised against developing countries, and Japan should not fall into this category.

Last year, Japan pledged $550 billion, or about ¥87 trillion, in investments in the United States in exchange for lowering reciprocal tariffs to 15%. Agreements have been reached on the first three projects, including gas-fired power generation, as part of the investments, and discussions on additional projects are underway.

It is hard to accept a high-tariff policy that treats Japan less favorably than the current Japan-U.S. tariff agreement. Prime Minister Sanae Takaichi should clearly convey to Trump during their upcoming summit that the new tariffs will damage the mutually beneficial Japan-U.S. relationship.

Energy prices, such as crude oil, are soaring, and a wave of rising prices is sweeping across the United States as well. Concerns are growing about worldwide stagflation, in which rising prices and an economic downturn occur simultaneously.

The high-tariff policy fuels price increases and is a measure that will have even greater adverse effects than before. Trump is urged to face the realities of the global economy.

(From The Yomiuri Shimbun, March 17, 2026)