Japan Demands Swift US Action On Auto Tariff Cuts, Seeks Clarification

Japan has stepped up efforts to secure prompt action from the US regarding previously negotiated automotive tariff reductions while seeking clarity on import duties for additional products, news agency Reuters reported on Thursday. These developments have surfaced as differing interpretations of their bilateral trade agreement continue to add strain to Japan Prime Minister Shigeru Ishiba's already vulnerable government.

During discussions with the US Secretary of Commerce Howard Lutnick in Washington on Wednesday, Japan's chief trade negotiator Ryosei Akazawa pushed for expedited implementation of the previously agreed reduction in US tariffs on Japanese automotive products and components, Japanese government statements were quoted in the report.

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Akazawa additionally requested verification and "immediate execution" of bilateral agreements concerning US import duties on other Japanese products, the government announced in Thursday's official statement.

New Tariff Structure Creates Urgency

The diplomatic meeting took place just hours before President Donald Trump's expanded tariff regime took effect Thursday, affecting numerous trading partners. Japan has been working urgently to resolve discrepancies with Washington regarding specific provisions of their bilateral trade arrangement.

What's In For Automotive Sector 

The agreement finalised last month established that the US would reduce tariffs on Japanese automotive imports to 15 per cent from the previous combined rate of 27.5 per cent. However, no implementation schedule was announced. While both nations agreed that US duties on most other Japanese imports would decrease to 15 per cent from 25 per cent starting Thursday, the absence of written documentation has created uncertainty about whether the new 15 per cent tariffs would be applied in addition to existing duties.

'Stacking' Dispute

Japan maintains that both countries had reached an understanding that its imported goods would receive exemption from tariff "stacking," a practice where multiple tariff rates can be applied to the same products.

During parliamentary remarks on Tuesday, Akazawa highlighted Japan's position that products such as Japanese beef, which currently face tariffs exceeding 15 per cent, should not be subject to the additional 15 per cent rate.

Documentation Gap

However, a Federal Register document accompanying US President Trump's July 31 executive order addressing tariff rates for various trading partners included a "no stacking" provision for the European Union, while no equivalent clarification was provided for Japan. Japan's Asahi newspaper reported Thursday, citing an unidentified White House official, that the US intends to implement stacking, applying an additional 15 per cent to all Japanese imports regardless of existing tariff levels above 15 per cent.

Conflicting Reassurances

Following the Asahi report, Chief Cabinet Secretary Yoshimasa Hayashi stated during a routine press conference that the US would likely avoid stacking 15 per cent tariffs onto existing duties. He indicated that Akazawa had received confirmation of this position from American counterparts during his Wednesday Washington visit.

Ishiba Administration Under Pressure

These inconsistencies have intensified criticism of Ishiba in parliament and domestic media for failing to secure written documentation detailing the trade agreement specifics with the US

Ishiba has defended this approach, explaining to parliament on Monday that Japan chose to proceed without written statements to prevent potential delays in US tariff reductions.

Several lawmakers have cautioned that the lack of written confirmation could prove problematic given Trump's unpredictable decision-making patterns.

The uncertainty compounds difficulties for Japan's unstable government under Ishiba's leadership, as he confronts resignation demands following the ruling coalition's significant defeat in last month's upper house election.

"In negotiating with the US, Minister Akazawa at least ought to have nailed down exactly when US automobile tariffs would be lowered to 15 per cent," ruling party heavyweight and former trade minister Ken Saito told Reuters on Tuesday.

Yuichiro Tamaki, leader of opposition Democratic Party for the People, urged Akazawa to press Trump's administration harder to adhere to the bilateral agreement.

"After all, I do feel that a document on the agreement was necessary," Tamaki wrote in an X post on Thursday.