As the temporary 10% global import tariffs in the United States are about to expire, the United States has announced new tariffs of 10% or 12.5% on 60 countries and regions, citing issues related to so-called "forced labor." Among these countries, Japan is subject to a new tariff rate of 12.5%.
According to Reuters, on July 24, Japan's Chief Cabinet Secretary Minoru Kitahara told reporters that Japan 'deeply regrets' this situation.
Japan's industry and trade both follow international rules," said Motohiro Kimura, "Regarding the U.S. imposition of tariffs on Japanese products due to allegations of forced labor imports that were not banned, Japan deeply regrets this action."
He added that the tariff agreement reached between Japan and the United States last year remains valid, and Japan will ‘continue to communicate with the United States’.
Mitsuyo Ueda stated, “We have also confirmed with the United States that the US will not impose additional tariffs (15%) on Japan under the agreement regarding cross-border trade beyond the year.” “We will continue to maintain close cooperation with the United States.”
Japanese media
The US-Japan tariff agreement was officially announced on July 23 last year by then Japanese Prime Minister Shigeru Akai. The core content is that the US will reduce the previously imposed 25% “counter-tariff” on imported goods and the 27.5% automotive tariff to 15%. In exchange, Japan, which had always held a strong opposition stance, softened its position and promised to provide significant investments and financing to the US.
One year after the agreement was implemented, the tariffs imposed by the Trump administration on goods such as cars continue to hold back Japan’s export performance that supports its economy.
Observer Network: Japan's exports to the US have been declining rather than increasing. Monthly figures have shown negative growth on a year-on-year basis, and signs of recovery only emerged in March of this year. In the automotive industry, which has been most affected, six major car companies including Toyota will suffer a total loss of 2.4 trillion yen (approximately 99.6 billion RMB) in operating profits due to tariffs during the fiscal year 2025 (April 2025 to March 2026).
According to this agreement, Japan has promised a total of $550 billion in investment and financing with the United States. So far, only $109 billion have been actually finalized, representing only 20% completion rate, indicating that progress has significantly stalled.
