On February 24, the Trump administration introduced new tariffs to replace the "reciprocal duties" that were deemed illegal by the Supreme Court. This new policy imposes an additional 10% tariff universally on various countries and regions. Although this appears to lower the duty rate from the previous 15% imposed on Japan, it also introduces an increase in tariffs on specific items due to the elimination of exemption measures from the Japan-U.S. customs agreement. This change raises concerns about the net impact on certain sectors of the Japanese economy that are already vulnerable to trade fluctuations.

The new tariffs do not cover "sector-specific tariffs" applied to items like automobiles and steel and aluminum products. Notably excluded are certain agricultural products such as beef and tomatoes, which were removed from tariff considerations late last year amid rising domestic prices in the U.S. This gap in coverage aims to mitigate immediate economic impacts but raises questions about longer-term U.S.-Japan trade relations and the potential for retaliatory tariffs from Japan.

As this policy unfolds, the economic landscape for Japan may shift significantly, especially for industries relying heavily on exports to the U.S. It will be crucial for Japanese businesses and policymakers to assess the implications of these new tariffs and strategize their responses to safeguard their trade interests amidst an evolving global trade environment.