5 days ago
Intensive Diet Deliberation on Tariffs: Details of Japan-U.S. Agreement Too Ambiguous
Japan and the United States reportedly agreed on reducing the U.S. tariff rate on Japanese automobiles to 15%, but no implementation date has been set.
The question of whether to revise the Japan-U.S. trade agreement, which sets the tariff rates between the two countries, also remains unresolved.
Under such circumstances, can it be said that the tariff negotiations have concluded? One cannot help but feel concern over the government's vague explanation.
Intensive deliberation on Japan-U.S. tariff negotiations was held at the House of Representatives Budget Committee.
Constitutional Democratic Party of Japan leader Yoshihiko Noda said the fact that a written agreement between Japan and the United States was not produced has led to discrepancies in their positions. 'The negative impact of not having a document is significant,' he said.
Democratic Party for the People leader Yuichiro Tamaki also emphasized that unless Japan clarifies its understanding of the tariff agreement, the United States will interpret it in a way that is advantageous for itself — a situation that is disadvantageous for Japan.
Prime Minister Shigeru Ishiba said, 'We were afraid that creating a document would delay the lowering of tariffs,' emphasizing that it was necessary to prioritize the agreement, even if it was only verbal.
The Japanese and U.S. positions on tariff negotiations are marked by discrepancies.
U.S. President Donald Trump signed an executive order imposing tariffs on various countries. However, the text of the order did not include the agreement with Japan to reduce tariffs on automobile imports.
Regarding Japanese investment in the United States, the U.S. side explained that Japan will invest $550 billion (¥80 trillion), and the United States will retain 90% of the profits from the investment.
Japan has explained that the ¥80 trillion is merely a target amount for public and private investment, and that the 90% of profits going to the United States refers to projects funded by Japanese government-affiliated financial institutions, which account for only 1% to 2% of the total.
Japan and the United States last concluded a trade agreement in 2020. It is unacceptable to nullify an agreement that is an international commitment through an executive order that applies only within the United States. If new tariff measures are to be implemented, it would only be proper to revise the 2020 agreement.
If the current situation is left unaddressed, the rule of law will be undermined from its very foundation. Japan should persistently emphasize the importance of free trade and the fact that tariff measures will be detrimental to the United States.
During the intensive deliberation, there were also calls for Japan to play an active role in revitalizing the free trade system.
It is important to deepen cooperation with the European Union and other parties interested in joining the Trans-Pacific Partnership agreement. The upcoming Tokyo International Conference on African Development, to be held in Japan later this month, could be utilized as an opportunity to call for cooperation with African countries as well.
(From The Yomiuri Shimbun, Aug. 5, 2025)
