US says 15% country-specific tariff for Japan is not ceiling
In clear contrast to Japan's explanation of the terms of a recent bilateral trade deal, the official, who spoke on condition of anonymity, said the key U.S. ally will not be given such special treatment.
The official's confirmation to Kyodo News came just hours before U.S. President Donald Trump's country-specific tariffs ranging from 10 percent to 41 percent are set to take effect, a week after their original start date.
Although Trump has insisted that his "America First" trade policies are revitalizing U.S. industries, the new rates of his so-called reciprocal tariffs are expected to cost the average U.S. household about $2,400 this year, according to estimates from the Yale Budget Lab.
The non-partisan research group's calculations also found that the overall average effective tariff rate on imports to the world's largest economy will reach 18.3 percent, the highest since 1934.
Trump, who has shown no sign of easing pressure on businesses to manufacture in the United States, told reporters in the Oval Office on Wednesday evening that he will impose a tariff of about 100 percent on semiconductor imports.
Among major trading partners with which the United States runs trade deficits, Japan is one of the few that managed to reach a deal before the Aug. 1 expiration of Trump's monthslong pause on country-specific tariffs.
But the White House official's statement suggested that the terms of the deal are being interpreted differently by Japan and the United States.
Under the deal, the Trump administration committed to lowering the tariff rate on Japanese goods, due to take effect on Thursday, to 15 percent from a threatened 25 percent.
Since July 22, when the two countries reached a compromise, Japanese officials have explained that beef exports from Japan, for example, would continue to be taxed at 26.4 percent as before, without the new 15 percent tariff being imposed.
Formal U.S. documents, including an executive order signed last week by Trump to modify tariff rates for dozens of countries, mention the "no stacking" condition only for the European Union, which reached a similar trade deal with the administration a few days after Japan.
Given the absence of a written agreement between Japan and the United States, Japanese opposition lawmakers have accused the government of failing to minimize the risk of differing interpretations of tariff implementation between the two countries.
Japan's chief tariff negotiator Ryosei Akazawa arrived in Washington on Tuesday night to ensure the United States honors the terms of the bilateral deal.
Akazawa has repeatedly said he confirmed with the United States that there were "no discrepancies" in their understanding of the verbal accord between the two countries.
On Wednesday, Akazawa held talks with U.S. Commerce Secretary Howard Lutnick, urging him to implement as early as possible an agreed tariff cut on Japanese car and auto part imports, according to the Japanese government.
During the meeting, which lasted about 90 minutes, Akazawa and Lutnick confirmed the importance of the bilateral deal and efforts to steadily carry out initiatives that serve the "interests of both countries," the government said.
Akazawa struck the trade deal with Trump during his last visit to Washington, with the U.S. president also agreeing to cut auto tariffs to 15 percent for Japan in exchange for a promise of massive investment in the United States.
However, unlike the country-specific tariff rate, it remains unclear when the Trump administration plans to implement the lowered auto tariffs.
Akazawa, Japan's minister for economic revitalization, is scheduled to stay in the U.S. capital through Friday and may also hold talks with Treasury Secretary Scott Bessent.
(By Takuya Karube)
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