Japan's Trade Minister fails to win U.S. assurances on tariff exemptions

Japan's Trade Minister fails to secure U.S. tariff exemption, sparking concerns over impact on Japanese exports and economy.

Japan's Trade Minister said this week that he has failed to win assurances from U.S. officials that the key U.S. ally will be exempt from tariffs, some of which take effect on Wednesday (March 12, 2025).

Yoji Muto was in Washington for last ditch negotiations over the tariffs on a range of Japanese exports including cars, steel and aluminum.

Mr. Muto said Monday (March 10, 2025) in Washington that Japan, which contributes to the U.S. economy by heavily investing and creating jobs in the United States, “should not be subject to” 25% tariffs on steel, aluminum and auto exports to America.

His meetings with U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer and White House economic advisor Kevin Hassett came just two days before the steel and aluminum tariffs are due to take effect. President Donald Trump has also said a possible 25% tariff on imported foreign autos could take effect in early April.

Mr. Muto said the U.S. officials acknowledged Japanese contributions and agreed to continue talks but did not approve his request for Japan's exemption from the steep import duties.

“We did not receive a response that Japan will be exempt,” Mr. Muto told reporters. “We must continue to assert our position.” As Mr. Trump's tariff threats have triggered tensions and vows of retaliation from Canada, Mexico and China, Japan has been working to firm up ties with other countries.

Last week, the Foreign and Trade Ministers from Japan and Britain gathered in Tokyo for their first “two-plus-two” economic dialogue. They agreed to stand up for “fair, rules-based international trade,” though nobody directly mentioned Mr. Trump.