TMTPOST -- The United States will make revision to remove the tariff overlapping and cut existing 25% duties on cars, according to Japan’s chief negotiator Ryosei Akazawa.
Credit：Brookings Institution
The U.S. government confirmed that it would end stacking of universal tariffs on Japan and take steps to cut auto duties, said Akazawa, head of Japan’s Economic Revitalization Ministry, after a meeting with U.S. counterparts in Washington on Thursday. “We have confirmed that when the US side takes measures to revise the executive order on universal tariffs, they will issue another order to reduce tariffs on cars and auto parts,” Akazawa said.
Akazawa during the meeting urged U.S. Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to ensure the universal 15% tariffs agreed last month were not overlapped on Japanese imports that were already subject to higher tariffs.
The U.S. officials expressed their regret about the staking rule that had been applied to Japan in spite of a verbal agreement, and explained they would amend the presidential order, so as to refund any overpaid levies since August 7, effective date of the worldwide reciprocal tariffs, Akazawa said.
Akazawa following the meetign said both sides have not agreed on timeline for the implementation. But Japanese side will continue to urge the U.S. side, “through all available means and channels” to make those things happen. The negotiator said he’s not sure when the revised presidential order would be issued, but Tokyo is seeking the issuance as quickly as possible as the losses suffered by Japanese companies due to the stacking tariffs are mounting day by day. He noted some companies even saw loss of 100 million yen, or $679,000 per hour.
Akazawa’s remarks suggested Lutnick and Bessent provided some relief during the meeting as confusions about details of the U.S.-Japan trade agreement is growing.
U.S. President Donald Trump on July 22 announced a “massive” trade deal with Japan, involving $550 billion in investments and a 15% reciprocal tariff on Japanese goods. Trump in his social media post said “Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits. ” But Japan on July 26 confirmed only a small part, just 1% to 2%, of the $550 billion deal with the US will be actual investment. Most of the money will be in the form of loans, Akazawa said.
Japanese Prime Minister Shigeru Ishiba on July 23 told reporters the 15% rate was the lowest so far among countries that have a trade surplus with the U.S., thus “ we have achieved the greatest results.” He also said Japan’s auto exports to U.S. will face a 15% tariff rate, down from the current 25% levied across countries.
However, prior to Akazawa’s confirmation on Thursday, a senior Japaneses ruling party official earlier that day said Washington has imposed higher tariffs than agreed 15% on imports from Japan. Japan faces overlapping tariffs, where a new 15% levy is added to existing import taxes, even though it had expected to be given an exemption stripping out the old tariffs, Liberal Democratic Party policy chief Itsunori Onodera said. Japanese media reported Washington would not exempt Tokyo from an order stacking new 15% tariffs on top of existing levies.
Akazawa on Tuesday before leaving for Washington insisted no stacking, calling it “mutual understanding on this matter.”
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