Japan's Chief Cabinet Secretary has confirmed that the country will steadily implement the tariff agreement with the U.S. in response to President Trump's announcement of a 15% alternative tariff.
In response to a recent ruling by the U.S. Supreme Court declaring President Trump's "reciprocal tariffs" illegal, Trump has proposed a new alternative tariff system with a tax rate of 15%. Japanese Chief Cabinet Secretary Hiroshi Kajiyama stated in a press conference that Japan is closely monitoring these developments and is committed to steadily implementing the tariff agreement reached with the U.S. last July. This agreement involved the U.S. reducing automotive tariffs and reciprocal tariffs to 15% in exchange for Japan committing to invest $550 billion in the U.S.
The Supreme Court's decision on October 20 declared Trump's key tariff policies illegal, leading to the introduction of a 10% alternative tariff, which was then raised to 15% within a day. The drastic shifts in the U.S. tariff strategy can significantly impact international trade dynamics. Japan's responsive measures indicate its strategic approach to maintaining strong economic ties with the U.S., ensuring commitments are upheld in the face of changing circumstances.
On October 18, both governments announced the first projects under the tariff agreement, which include the production of artificial diamonds, the development of infrastructure for the export of U.S. crude oil, and the construction of gas-fired power plants. These initiatives signify the potential for significant collaborative investments between the U.S. and Japan, emphasizing the importance of this tariff agreement in light of recent political and economic developments.
