Japanese Prime Minister Shigeru Ishiba admitted on the 7th that the U.S. side had not implemented the “tax reduction” provisions specified in the agreement previously reached between the two countries.
During earlier trade negotiations, the U.S. side promised that when Japan is subject to “reciprocal tariffs,” Japan would receive “tax reduction”: for Japanese goods exported to the U.S. with an existing tariff rate of 15% or higher, no additional reciprocal tariff would be imposed, while for goods with a tariff rate below 15%, the rate would be increased to 15%.
Speaking to the media at the Prime Minister's residence, Ishiba said, “We strongly demand the U.S. side to immediately take measures to amend the presidential executive order.”
He pointed out that “there is no disagreement between Japan and the U.S.” on this matter, and Akazawa Ryoji, the Minister of Economic Revitalization who is currently visiting the U.S., has reconfirmed the terms of the agreement.
Japan believes that, as the U.S. did not mention detailed tariff rules for Japan in its earlier official announcement, some Japanese products may be subject to higher tariffs.
U.S. Promises to Amend at the Appropriate Time
Meanwhile, Akazawa Ryoji, who is visiting the U.S., stated on the 7th local time that the U.S. government has pledged to amend the announcement at an appropriate time and lower import car tariffs.
Akazawa Ryoji requested that U.S. Commerce Secretary Lutnick and Treasury Secretary Besant ensure tariffs on Japanese goods exported to the U.S. are capped at 15% and not subject to additional higher tariffs. Lutnick and Besant indicated that the relevant executive order would be revised to reduce tariffs from the current 27.5% back to 15%, and that any excess tariffs collected since August 7th would be refunded.