Blow softens for Japanese knives: Trump rolls back to 15%; Seki CEO sees strategy, not surprise
In Seki, a Japanese city with a 700-year legacy of blademaking, news that US tariffs on Japanese goods will be reduced from 25% to 15% starting August 1 has been met with calm acceptance, and some skepticism.
Around 40% of Seki's kitchen knives are exported to the United States, according to local authorities. But Katsumi Sumikama, head of Sumikama Cutlery, isn't rushing to celebrate. 'Lower tariffs are better,' he said, 'but I'm not that surprised.'
Sumikama suspects the tariff rollback was part of a calculated play by US President Donald Trump. 'It's so Trump-like, propose something extreme first, then scale it back to look like a win.'
The tariff reduction comes as part of a broader trade push by Trump, who vowed to strike '90 deals in 90 days.' Japan joined four other nations, Britain, Vietnam, Indonesia and the Philippines, in finalizing an agreement with Washington by the July-end deadline.
While headlines have largely focused on the impact of tariffs on Japan's auto and steel industries, the high-end Japanese kitchen knife sector, a growing favorite among US chefs and home cooks, is also deeply intertwined with American demand.
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Despite the tariffs, Sumikama said his company did not plan any price hikes for the US market. North American exports account for a modest five percent of the firm's revenue, with more sales flowing to Europe and Asia.
Seki's artisans have long adapted to global pressures. 'We've weathered the storm,' said Sumikama, recalling past currency shocks and the 2008 financial crisis. His US clients, he added, are also used to uncertainty and 'not worried at all.'
Still, Sumikama had a warning: 'If Trump thinks he can make America strong just by raising tariffs, he's mistaken. The American people will ultimately pay the price.'
Sumikama Cutlery employs about 30 workers, blending cutting-edge machinery with hand-finishing to produce blades accurate to one-thousandth of a millimeter. Their knives are known for their durability, sharpness, and subtle 'wabi-sabi' beauty, a quality that, as Sumikama notes, cannot be mass-produced elsewhere.
'Even if President Trump tells people to make Japanese-style knives, they cannot,' he said.
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