Japan expressed concern over President Trump’s auto tariffs, citing inconsistencies with a 2019 bilateral trade deal signed with the U.S.
Prime Minister Shigeru Ishiba said Japan is committed to the 2019 agreement despite current concerns over President Trump’s new tariffs.
Trump’s tariffs impose a 25% duty on imported vehicles, effective April 3, 2025, and auto parts duties will be imposed in May. The 2019 U.S.-Japan trade deal, signed during Trump’s first term, reduced tariffs on U.S. farm goods and Japanese machine tools.
Then-Prime Minister Shinzo Abe secured assurances from Trump, stating, “Between President Trump and I, this has been firmly confirmed that no further, additional tariffs will imposed.”
The 2019 bilateral trade deal did not cover auto trade between the United States and Japan. However, at the time, Prime Minister Abe had received assurances from President Trump that the U.S. would not impose national security tariffs on Japanese car imports. As such, the deal avoided higher U.S. car duties.
According to Reuters, Japan faces Trump’s 24% tariff on its exports to the United States, which were paused until July. Trump’s 25% auto tariff and a 10% universal rate remain intact, impacting Japan’s car-heavy economy.
Ishiba addressed the issue in parliament, noting, “Japan has grave concern over the consistency” between the tariffs and the 2019 bilateral deal. “We will continue to convey our stance (to the U.S.) from this standpoint,” he added, clarifying that Japan has no plans to terminate the agreement. The deal excluded automobile trade and remains a cornerstone of bilateral relations.
Japan’s trade negotiator, Ryosei Akazawa, visited Washington last week to discuss trade issues, including non-tariff barriers and exchange rates. Finance Minister Katsunobu Kato is set to meet U.S. Treasury Secretary Scott Bessent this week to address currency concerns, signaling Japan’s proactive diplomacy.
Japan’s firm stance reflects its intent to protect its auto sector while navigating U.S. trade policies. As talks continue, the outcome could shape bilateral trade dynamics and influence Japan’s export strategy amid ongoing tariff uncertainties.
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