Japan makes progress in US trade talks, secures promise to reduce auto tariffs

This statement, made after meetings with US Trade Representative Howard Lutnick and Treasury Secretary Scott Bessent, brought relief to both sides despite lingering doubts about the details of the trade agreement reached between the two countries last month. US officials expressed regret over the stacking rule applied to Japan and stated that overpaid tariffs would be refunded. However, no clear timetable for implementation has yet been decided. An official statement from the US side has not been released.

Rising Criticism Against Prime Minister Ishiba

Japan faced unexpectedly high universal tariffs under the new duties imposed by US President Donald Trump, reigniting criticism toward Prime Minister Shigeru Ishiba. Following poor election results, calls for Ishiba’s resignation have increased.

Akazawa confirmed that the US is preparing to revise the presidential proclamation on universal tariffs and will issue a new regulation aimed at lowering tariffs on automobiles and spare parts.

Stacking System and Status of Auto Manufacturers

Under the stacking system, the 15% tariff applied to Japan is added on top of existing tariffs. If Japan receives an exemption, the 15% rate will apply only to products previously taxed below 15%; products with tariffs above 15% in the past will not face additional duties.

Meanwhile, Japanese automakers are still subject to high tariffs of 27.5%. Akazawa stressed that the losses for Japanese companies increase daily, with some firms reportedly losing up to 100 million yen (approximately $679,000) per hour.