Trump announces new tariff rate on Japan — and extension of deadline to Aug. 1
'We have had years to discuss our Trading Relationship with Japan, and have concluded that we must move away from these longterm, and very persistent, Trade Deficits engendered by Japan's Tariff, and Non Tariff, Policies and Trade Barriers,' Trump wrote.
The new 25% duty rate — which is just slightly higher than the 24% rate announced on April 2 — will be charged on almost all Japanese goods entering the United States. The rate is also separate from sectoral tariffs that are currently in place, which include 25% on vehicles and auto parts and 50% on steel and aluminum.
Goods shipped via a third country to avoid higher tariffs will not be immune, Trump wrote. He also noted that if Japan raises tariffs on American exports, the same number will be added onto the 25% the U.S. charges.
New vehicles from Japanese auto maker Honda are seen at a parking lot in the Port of Richmond in San Francisco on Monday, as trade tensions escalate after U.S. President Donald Trump said he would impose a 25% tariff on goods from Japan starting Aug. 1.
The Trump administration announced its reciprocal tariffs on dozens of countries on April 2, then put the framework on a 90-day pause two days later, during which a 10% baseline rate remained in place. Countries had been required by the U.S. to strike a deal by July 9 to avoid the higher rate from going into effect again.
Ironically, Trump's attempt to ramp up pressure by sending out ultimatums has gained Japan a few more weeks. The U.S. president signed an executive order later Monday to extend the deadline until Aug. 1.
Voters in Japan will head to the polls on July 20 for an Upper House election that is expected to be a tough go for Ishiba and his ruling Liberal Democratic Party.
Ishiba and South Korean President Lee Jae Myung became the first recipients of Trump's letters. The president announced later in the day that similar letters were sent to countries including South Africa, Malaysia, Myanmar and Laos, with the new tariff rate set as high as 40%.
Trump had berated Japan for three days in a row last week for the lack of progress in trade talks between the two countries, while threatening to take tariffs to as high as 35% at one point. Ryosei Akazawa, Japan's chief tariff negotiator, talked with U.S. Commerce Secretary Howard Lutnick over the phone last Thursday and Saturday following Trump's angry remarks.
Ishiba will convene a tariff task force meetingTuesday following the latest announcement, according to reports.
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