Economy February 24, 2026

Japan Seeks Same Treatment Under U.S. Temporary Tariffs Ahead of Prime Minister’s Visit

Tokyo asks Washington to preserve benefits of last year’s trade pact as new 15% duties raise concerns for exporters and auto sector

By Ajmal Hussain
Japan Seeks Same Treatment Under U.S. Temporary Tariffs Ahead of Prime Minister’s Visit

Japan has requested that its treatment under newly announced U.S. tariffs remain as favourable as under the trade agreement struck last year. Tokyo is treading carefully before Prime Minister Sanae Takaichi’s planned late-March visit to Washington, citing risks to sectors like autos if additional levies are layered on existing concessions.

Key Points

  • Japan has asked the U.S. to ensure its treatment under the new temporary 15% tariff regime is at least as favourable as under last year’s trade agreement - impacts trade and export sectors, notably autos.
  • Tokyo and U.S. Commerce Secretary Howard Lutnick agreed on a call to implement the trade deal "in good faith and without delay." - impacts bilateral trade relations and investment flows.
  • Tokyo has committed financing for $36 billion in initial U.S. projects and agreed to a $550 billion package of U.S.-bound loans and investment under last year’s deal - impacts infrastructure and energy project financing.

Japan has formally asked the United States to ensure that the treatment it receives under a recently introduced U.S. tariff regime is no less favourable than what was agreed in last year’s trade deal, Japanese trade officials said on Tuesday. The request comes as Tokyo seeks to avoid disrupting relations ahead of Prime Minister Sanae Takaichi’s trip to Washington in late March.

The concern stems from a temporary 15% duty that U.S. President Donald Trump imposed on imports from all countries after the U.S. Supreme Court struck down his earlier tariffs that were based on the International Emergency Economic Powers Act, or IEEPA. The 15% levy is the maximum allowed under a separate U.S. law, and the president has signalled that nations could face higher duties under other trade statutes if they step back from bilateral agreements with the United States.

On Monday, Japan’s trade minister Ryosei Akazawa spoke by phone with U.S. Commerce Secretary Howard Lutnick. The two agreed that the countries would carry out the trade deal reached last year "in good faith and without delay," according to the Japanese trade ministry.

Officials in Tokyo are cautious that some goods now benefiting from lower tariffs under the accord could see higher charges if the new 15% duty is "stacked" on top of existing levies. A trade ministry official noted that items currently subject to tariffs below 15% under most favoured nation status are those that could theoretically face increased duties under the new U.S. policy.

Akazawa said Japan had asked Washington to apply treatment that is equally favourable to that provided under the agreement concluded in July. That deal lowered tariffs on automobiles and other products to 15%, while Japan committed to a $550 billion package of loans and investment destined for the United States.

Japan has already agreed to finance a set of U.S. projects valued at $36 billion, which were unveiled last week as the first three initiatives to be supported by Tokyo. The projects include an oil export facility, a plant for industrial diamonds, and a gas-fired power plant.

Akazawa defended the overall tariffs-and-investment package as mutually beneficial, saying "It’s not that Japan was forced into a loss-making agreement," and describing it as a "win-win deal" in the face of shared economic security concerns such as dependence on Chinese rare earths. He added that he currently has no plans to travel to the United States for further trade negotiations.

Business groups in Japan reacted cautiously to the U.S. court ruling and the subsequent imposition of temporary duties. Yoshinobu Tsutsui, head of Japan’s largest business lobby Keidanren, told reporters the Supreme Court decision "proved checks and balances are in effect" and called it "positive for the economy overall," while warning that the new Trump tariffs raise risks for corporate investment, according to the Yomiuri newspaper.

Economic modelling cited by Japanese officials suggests there could be measurable effects if permanent tariffs are not implemented to replace the IEEPA-based levies. Takahide Kiuchi, an economist at Nomura Research Institute, estimated that Japan’s real gross domestic product would be higher by 0.375% annually if Washington does not put in place permanent tariffs to supplant the IEEPA measures.

Government sources in Tokyo said they would avoid reopening the agreement for renegotiation out of concern that doing so could provoke the United States into imposing harsher, sector-specific tariffs that are not affected by the Supreme Court ruling, with the auto industry cited as particularly vulnerable. With security considerations, including worries about China’s export controls, influencing Tokyo’s posture, officials said Japan intends to proceed under the existing deal to preserve stable ties with Washington ahead of the prime minister’s visit.


Summary

Japan has requested parity of treatment under newly announced U.S. tariffs compared with last year’s trade deal, seeking to avoid higher levies on exporters ahead of a key diplomatic visit. Tokyo stressed implementation "in good faith and without delay" while signalling it will not renegotiate the existing agreement to prevent possible retaliatory measures from the United States.

Risks

  • If the new 15% duty is layered on top of existing lower tariffs, some Japanese exports that currently enjoy rates below 15% could face higher levies - risk to exporters and manufacturing sectors, especially autos.
  • Tokyo will not reopen the agreement for renegotiation to avoid provoking harsher sector-specific U.S. tariffs that are unaffected by the Supreme Court ruling - uncertainty for industries reliant on stable tariffs, notably the auto industry.
  • The temporary U.S. tariff regime and related legal shifts create investment risk for Japanese firms considering expansion or capital allocation in the United States - potential impact on corporate investment decisions.

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