Japan’s trade minister, Yoji Muto, announced on Tuesday that he had been unsuccessful in securing assurances from U.S. officials that Japan would be exempt from new tariffs on steel and aluminum, set to take effect on Wednesday.
Muto was in Washington for final negotiations over tariffs that could impact a range of Japanese exports, including cars, steel, and aluminum. During his discussions with U.S. Commerce Secretary Howard Lutnick, U.S. Trade Representative Jamieson Greer, and White House economic advisor Kevin Hassett, Muto emphasized that Japan, which significantly contributes to the U.S. economy through investments and job creation, “should not be subject to” the 25% tariffs on steel, aluminum, and auto exports to America.
Despite Japan’s efforts, Muto shared that the U.S. officials acknowledged Japan’s economic contributions but did not approve the request for exemption from the hefty import duties. “We did not receive a response that Japan will be exempt,” Muto told reporters. “We must continue to assert our position.”
With Japan being highly dependent on exports, the looming auto tariffs pose a significant risk to its economy, as vehicles are one of its largest exports and the United States is their primary market.
Tensions between the U.S. and Japan have also been exacerbated by Trump’s criticism of Japan’s contributions to mutual defense arrangements. However, Muto noted that both sides had agreed to continue discussions to establish a “win-win” relationship that would serve the national interests of both nations.
Additionally, the two sides explored potential energy cooperation, including the joint development of a liquefied natural gas pipeline in Alaska. This initiative was initially agreed upon during Japanese Prime Minister Shigeru Ishiba’s visit to the White House in February.
