Japan's trade minister unable to secure US tariff exemption assurance

Photo : AP

Japan’s trade minister, Yoji Muto, said this week that he could not get a promise from U.S. officials that Japan will be free from new tariffs. Some of these tariffs will start on Wednesday and will affect important Japanese products.

Muto went to Washington to ask the U.S. government not to put high taxes on Japanese exports like cars, steel, and aluminum. On Monday, he told reporters that Japan helps the U.S. economy by investing money and creating jobs. He said Japan should not have to pay the heavy 25% tax on steel, aluminum, and cars sold to the U.S.

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During his trip, Muto met with U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and White House economic advisor Kevin Hassett. These meetings happened just two days before the U.S. planned to start charging extra tax on steel and aluminum. U.S. President Donald Trump has also said that he might put a 25% tax on foreign cars as early as April.

Muto said that U.S. officials know that Japan has helped the American economy and that they agreed to keep talking. But they did not say that Japan will be free from the new taxes. "We did not get a promise that Japan will be exempt," Muto told reporters. "We have to keep fighting for our position."

As Trump’s tariff plans have made other countries angry, Canada, Mexico, and China have warned they will hit back with their own taxes. Japan has been trying to make stronger trade friendships with other countries.

Last week, Japan held a meeting in Tokyo with British leaders to talk about trade. Both countries agreed that trade should be fair and follow rules. Even though no one said Trump’s name, it was clear that Japan wants to prepare for problems caused by U.S. trade policies.

Japan depends on selling its goods to other countries, and the new U.S. tax could cause big problems. Cars are Japan’s biggest export, and the U.S. is the most important market for them. If Trump’s 25% tax on foreign cars happens, Japan’s car industry could lose a lot of money.

"Companies in Japan are very worried," said Rintaro Nishimura, a political expert at The Asia Group. "The car industry is Japan’s most valuable business, and these taxes could hurt it badly." Nishimura also said people in Japan feel uneasy because the U.S. made this decision very fast, only two months after Trump became president.

Japan is also worried because Trump has complained that Japan does not spend enough money on defense agreements between the two countries. This has made relations between Japan and the U.S. more difficult.

Even with these problems, Muto said that both countries agreed to keep talking and try to find a way to make trade fair for both sides. They also discussed working together on energy projects, including a plan to develop natural gas reserves in Alaska. This plan was first talked about when Japanese Prime Minister Shigeru Ishiba visited Trump at the White House in February.

Muto’s trip did not bring a clear answer for Japan, but it showed that Japan will keep pushing to protect its businesses from U.S. tariffs. Discussions will continue as Japan looks for a better deal.

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