Japan's government has formally requested that the United States exclude it from the newly imposed 25% tariffs on steel and aluminum imports. The request comes as part of efforts to mitigate the economic impact of these tariffs, which are part of President Donald Trump's aggressive strategy to reset global trade dynamics. The Japanese government made this request through its embassy in Washington, aiming to secure an exemption before the measures take effect.
Previously, under the Biden administration, the U.S. had granted Japan a duty-free quota allowing up to 1.25 million tons of steel imports. However, the current administration under Trump has removed such exceptions and exemptions from the 2018 tariffs on steel imports. This move has raised aluminum tariffs from 10% to 25%, intensifying trade barriers for Japan.
In 2024, Japan exported approximately 1.18 million tons of steel to the United States, valued at 302.7 billion yen ($2 billion), accounting for 1.4% of Japan's total exports to America. These figures highlight the significant impact these tariffs could have on Japan's economy. The country plans to lobby for an exemption in the coming weeks to avoid potential economic repercussions.
The tariffs are part of a broader U.S. initiative to strengthen domestic manufacturing by imposing higher costs on imported materials. However, this approach has sparked concerns among international trade partners, including Japan, which views the tariffs as a threat to its economic interests.
"Japan will firmly take necessary steps as we fully examine details of the new measures and their possible impact on the Japanese economy," stated Chief Cabinet Secretary Yoshimasa Hayashi.
The American Iron and Steel Institute reported Japan's steel exports to the U.S. in 2024, underscoring the importance of these exports to Japan's trade relationship with the United States. With the new tariffs looming, Japan is keen to negotiate terms that would allow it to maintain its trade flow without the additional financial burden.
