Confusion clouds US-Japan tariff deal as 15 per cent duty comes into effect

Tokyo: A fresh round of US tariffs under President Donald Trump’s administration took effect on Thursday, but differences have emerged between Washington and Tokyo over the interpretation of their bilateral trade agreement, particularly regarding the treatment of Japanese imports, the Japanese media reported.

While Japanese officials maintain that the two sides have reached a shared understanding on the new tariff structure, a senior White House official has stated otherwise. Speaking on condition of anonymity, the official said that Japanese imports already subject to tariffs would face an additional 15 per cent duty, unlike the European Union, which has been given exemptions under separate arrangements, Japan’s Kyodo News agency reported on Thursday.

The clarification came as Tokyo reaffirmed its position that Japanese goods currently taxed at less than 15 per cent would face a uniform 15 per cent tariff, while those with higher existing duties would not be subject to the additional levy.

Also Read: Telangana CM, ministers wait for audience with President over BC reservation issue

“We have confirmed that there is no discrepancy,” said Japan’s Chief Cabinet Secretary Yoshimasa Hayashi at a press conference on Thursday.

Hayashi said that Japan’s chief negotiator, Ryosei Akazawa, who is currently in Washington, had reconfirmed the terms of the agreement with US counterparts and urged immediate steps to implement it as per the understanding reached earlier, Kyodo News agency reported.

“We will continue to communicate with the United States at various levels to make sure that the agreement is firmly in place,” Hayashi added.

However, an executive order signed by President Trump did not explicitly mention this tariff framework for Japan, leading to uncertainty in Tokyo. The White House official’s remarks appear to contradict the Japanese government’s interpretation, raising fresh concerns among trade observers.

As part of the broader bilateral deal, the US is expected to reduce its 27.5 per cent tariff on Japanese automobiles. But with no written commitment or timeline, scepticism remains in Japan about whether the promised reduction will materialise.

The issue has sparked debate among Japanese policymakers, some of whom question whether the Trump administration will honour the terms in full, particularly in light of previous trade tensions and inconsistent messaging from US officials.

Despite the uncertainty, Tokyo reiterated its intention to engage with Washington to ensure that the agreement is implemented in a “reciprocal” and transparent manner, in line with the spirit of the bilateral talks.