"Tariffs Will Not Disappear" - Japanese Government Maintains Stance on 80 Trillion Yen Investment in the U.S.
The Japanese government remains cautious about potential tariff changes in light of a recent Supreme Court ruling, stating that expectations for tariff removal should be tempered while proceeding with a scheduled 80 trillion yen investment in the U.S.
The recent ruling by the U.S. Supreme Court deemed the reciprocal tariffs imposed during the Trump administration as illegal, yet the Trump administration is currently considering new tariff measures based on alternative legal grounds. In response, Japanese officials have expressed a realistic perspective about tariff expectations, emphasizing that "tariffs will not disappear." They intend to monitor the situation closely, signaling that businesses should not expect a significant reduction in tariffs soon. Japan remains committed to fulfilling its investment pledge of approximately 80 trillion yen in exchange for lowered tariffs on automobiles and other goods as previously agreed upon with the U.S.
Japanese government officials have commented on the Supreme Court's ruling by indicating that the Trump administration has plans to revert back to previous tax rates. They noted that there are still numerous methods that can be employed for imposing tariffs. Meanwhile, officials from the Ministry of Foreign Affairs have expressed uncertainty regarding how the administration will respond and acknowledged the need to observe developments closely. Trump's announcement of a new 10% tariff adds further complexity, as it may lead to cases where the combined tariffs exceed the previous 15% rates, prompting Japan to analyze the potential impacts and gather necessary information.
Despite these tariff uncertainties, Japan has unveiled three projects related to the improvement of U.S. crude oil export infrastructure as part of the first phase of its investment commitments. Japanese Ministry of Economy, Trade, and Industry officials have confirmed that the selected projects will offer benefits to Japan. The overall policy appears steadfast regardless of the legal ruling, with government representatives reiterating that the automobile tariffs are still at reduced rates and confirmed their intention to continue pursuing these investments without changes to their strategy.