Uncertainty Looms Over US-Japan Tariff Pact as 15% Duty Kicks In

Japanese authorities confirm that the two countries have agreed on a common understanding of the new tariff regime.

A fresh wave of U.S. tariffs imposed by President Donald Trump's administration went into force on Thursday, but a difference in how Washington and Tokyo treat their trade agreement has caused confusion, especially regarding the treatment of Japanese imports, the Japanese press reports.

Japanese authorities confirm that the two countries have agreed on a common understanding of the new tariff regime.

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However, according to a senior White House official, who was speaking anonymously, there was a different point of view. The official informed Japan's Kyodo News that Japanese items already facing tariffs would bear an additional 15 percent duty. The strategy is different from what was adopted in the case of the European Union, which has been given some exemptions under bilateral agreements.

In turn, Tokyo reaffirmed its commitment that Japanese products currently subject to tariffs of less than 15 percent would be leveled on a uniform 15 percent level, while those productively subject to greater levies would not be subject to further charges.

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"We confirmed that there is no gap," Japan's Chief Cabinet Secretary Yoshimasa Hayashi told reporters at a press conference on Thursday.

Hayashi also said that Japan's chief negotiator, Ryosei Akazawa, currently in Washington, has reiterated the conditions with American authorities and called for quick steps to put the accord into effect as agreed earlier, Kyodo said.

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"We will continue to exchange messages with the United States at different levels to ensure that the agreement is firmly in place," Hayashi further said.

Still, President Trump's executive order detailing the new tariffs does not mention Japan's tariff treatment explicitly, further muddying the waters. The White House official's remark seems to run counter to Tokyo's interpretation of events and has raised renewed alarm among trade analysts and Japanese stakeholders.

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Another area of dispute is the U.S. commitment to reduce its 27.5 percent tariff on Japanese vehicles under the overall trade agreement. While for Tokyo this is a central feature of the accord, the lack of any formal document and time frame has raised doubts about Washington's commitment.

The breakthrough has been met with skepticism by Japanese legislators, with some questioning whether they can trust the Trump administration to enforce the terms, given previous trade tensions and inconsistencies in U.S. representatives.

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In spite of these doubts, Japan has reiterated its determination to keep cooperating closely with America to ensure that the deal is implemented fairly, reciprocally, and with complete transparency—keeping with the original spirit of their bilateral talks.

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