TOKYO: Japan could be subject to higher tariffs if the U.S. moves forward with a new regime of import duties, but Tokyo has requested that its treatment be as favourable as an agreement reached by the two sides last year, Japanese officials said on Tuesday.
Multiple Japanese government officials told Reuters that Tokyo does not intend to renegotiate its trade deal with Washington ahead of Prime Minister Sanae Takaichi's visit to the U.S. next month.
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President Donald Trump, following the U.S. Supreme Court's decision on Friday to strike down his tariffs under the International Emergency Economic Powers Act (IEEPA), applied a 15% duty on imports from all countries, the maximum allowed under a law that is separate from the one the Supreme Court examined.
Trade minister Ryosei Akazawa said Japan requested treatment that is equally favourable to the trade deal that was agreed upon last year following Trump's weekend announcement. He also said some Japanese exports, which are currently subject to reduced tariffs under the deal, may face higher levies.
Trump also warned countries that if they backed away from their trade deals with the U.S., he would hit them with higher duties under different trade laws.
Akazawa reaffirmed the implementation of last July's trade deal "in good faith and without delay" in a Monday call with U.S. Secretary of Commerce Howard Lutnick, the trade ministry said.
Asked about the Supreme Court decision, Akazawa and other officials said they would closely examine its details.
In July, the U.S. and Japan agreed upon a trade deal that cut tariffs on autos and other goods to 15%, while Japan agreed to a $550 billion package of U.S.-bound loans and investment.
The two countries last week unveiled the first three U.S. projects - valued at $36 billion - to be financed by Japan, including an oil export facility, an industrial diamonds plant and a gas power plant.
"It's not that Japan was forced into a loss-making agreement," Akazawa said, adding that the tariffs-and-investment agreement is a "win-win deal." He said he has no plans to visit the U.S. for more trade talks.
Government sources familiar with the matter said Tokyo will not seek to review the agreement for fear of provoking Trump into applying harsher sector-specific, non-IEEPA-related tariffs - particularly on Japan's auto industry - and to maintain stable relations with Washington ahead of Takaichi's visit.
