Japan’s chief trade negotiator, Ryosei Akazawa, said on May 20, 2025 that the country is firm in its demand for the removal of US tariffs during bilateral trade negotiations.

He said that Japan will not rush into a deal that could undermine its interests.

At a press conference, Akazawa described US tariffs on automobiles, car parts, steel, and aluminum as “regrettable.”

He reiterated Japan’s position of seeking their elimination and confirmed that working-level talks took place in Washington on May 19, 2025.

However, details for a third round of ministerial-level negotiations have not yet been finalized.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ US-Japan trade tensions follow historical patterns that span decades

The current trade standoff mirrors the 1980s-90s tensions when the US imposed protectionist measures on Japanese automobiles amid concerns over trade deficits and perceived economic threats 1.

Despite these recurring conflicts, the relationship has shown resilience through established frameworks, as demonstrated by the Clinton administration’s 1993 Framework Agreement which increased US exports to Japan by 85% in targeted sectors 2.

Today’s 24% tariff threat on Japanese goods represents the latest chapter in this cyclical relationship, with automotive exports remaining at the center of disputes just as they were forty years ago 3.

Japan’s demand for complete tariff elimination rather than reduction follows a strategic pattern seen in previous negotiations, where holding firm initially often leads to more favorable outcomes 4.

The stakes are particularly high now as these tariffs would be part of the highest effective US tariff rate (22.5%) since 1909, creating significant pressure on Japan’s export-oriented economy 5.

2️⃣ Both nations face significant economic consequences from tariff decisions

Japan’s economy is particularly vulnerable to US tariffs, with automotive exports being a critical sector that faces a potential 25% tariff rate, prompting Prime Minister Ishiba to announce emergency economic measures 6.

These measures include subsidized petrol prices, partial coverage of electricity bills, and expanded low-interest loans to small and mid-sized companies, showing the anticipated widespread economic impact 6.