Tokyo Calls on US to Ensure Japan Not Worse Off With New Tariffs

Sakura Murakami

Tue, February 24, 2026 at 2:49 PM GMT+9 4 min read

Bloomberg

(Bloomberg) – Japanese Trade Minister Ryosei Akazawa called on the US to ensure that new tariff measures would not leave Tokyo with tougher conditions than those agreed in last year’s trade deal, during a call with Commerce Secretary Howard Lutnick.

Following the rapid changes in US tariffs in recent days, Akazawa and Lutnick agreed that Japan and the US would continue to work closely to ensure the swift and smooth implementation of projects that are part of a $550 billion investment mechanism, during the call on Monday evening. The two spoke for about 40 minutes, according to a statement from Japan’s trade ministry.

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“Minister Akazawa also conveyed that, as the U.S. government rolls out new tariff measures, Japan’s position should not be worse off than its position under last year’s Japan–U.S. agreement,” the statement read. Under last year’s deal Japan agreed to create the $550 billion investment vehicle as part of the conditions for securing a lower reciprocal tariff rate and to lower duties on auto imports from Japan to 15% from 27.5%.

WATCH: Bloomberg News’ Rosalind Mathieson discusses what’s next after Trump’s tariff takes effect.Source: Bloomberg

The statement shows that confusion pertaining to US trade policies persists almost a year after Donald Trump first started threatening US trading partners with tariffs after taking office in January 2025. Following the Supreme Court’s decision last week to strike down Trump’s reciprocal tariffs as illegal, the administration said a 10% levy would be imposed beginning Tuesday morning, according to a White House fact sheet. Trump subsequently threatened to increase the rate to 15%.

On the surface, the latest rumblings from the White House may not result in more onerous conditions for Japan, as the reciprocal tariff on its products was already set at 15%.

If the fresh tariffs imposed under Section 122 of the Trade Act of 1974 are also set at 15% that would mean Japan by and large pays the same amount in levies.

Still, given the unpredictability of previous tariff roll-outs, it appears Japan is taking no chances.

“There is a possibility that some items, which were set at a non-stacked 15% rate in accordance with the Japan-US trade deal last year, could see an additional tariff burden with the new levies,” Akazawa said in a regular press briefing held on Tuesday. He reiterated that the government will continue working with the US to ensure that Japan isn’t worse off with the new tariffs.

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He refrained from detailing what Lutnick said during the phone call, and said that for now there were no plans for a visit to the US to continue negotiations.

“We will continue to work on implementing the trade deal steadily and surely, and we will continue to seek the US to do so as well,” Chief Cabinet Secretary Minoru Kihara said in a regular press briefing held Tuesday. He added that the government will keep a close eye on further developments and any impact on the existing trade deal.

The initial batch of investment projects, announced just last week by Trump, includes outlays for a data infrastructure project, a deep sea oil terminal, and a facility to manufacture synthetic diamonds used for semiconductors. All of the projects announced so far are based in the US.

“Both sides reaffirmed that Japan and the US would continue to work on implementing the agreed trade deal swiftly and in good faith,” the trade ministry statement said.

Itsunori Onodera, a former defense minister who currently serves as chairperson of the ruling party’s tax research group, said Sunday during a live broadcast on Fuji TV that the tariff situation in the US was “a real mess.”

He dismissed the possibility of Japan seeking a renegotiation of the trade deal, however. He pointed out that the crux of trade negotiations last year was lowering tariffs on autos — Japan’s largest source of exports and a key provider of jobs and investment.

“For Japan, the top priority was autos at the time, but those auto tariffs are not covered by this Supreme Court decision. It wouldn’t be good if we started seeing an impact there because we try to renegotiate the deal,” he said.

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