Japan says 'regrettable' not exempt from US steel tariffs

TOKYO: Japan said on Wednesday it was "regrettable" that the country had not been granted an exemption from US President Donald Trump's steel and aluminium tariffs of 25%.

When asked if Japan was considering retaliatory measures, Chief Cabinet Secretary Yoshimasa Hayashi stated that both nations would continue discussions on the duties, which came into effect at midnight US time (0400 GMT Wednesday).

“Widespread measures to limit trade risk having a significant impact on the Japan-US economic relationship, the global economy, and the multilateral trade system,” Hayashi said, adding, “That Japan was not excluded from the imposition of additional tariffs is regrettable.”

In 2024, Japan exported 31.4 million tonnes of steel, of which 1.1 million tonnes were sent to the United States—accounting for approximately four per cent of US steel imports, according to American data.

Hayashi further explained that imports of Japanese steel and aluminium would not harm US national security. Instead, he stressed that Japan’s high-quality products are irreplaceable and essential for bolstering the competitiveness of the US manufacturing industry.

Yoji Muto, Japan’s Minister of Economy, Trade and Industry, visited Washington earlier this week to appeal for Japan’s exemption from both metal and forthcoming vehicle tariffs. During Muto’s visit, US officials acknowledged Japan’s economic contributions, including job creation and investment, and reiterated the priority of their relationship with Japan, according to Hayashi.

Masakazu Tokura, chair of the Japan Business Federation, remarked that Japanese exports of steel and aluminium to the United States represent a small share and would not greatly impact Japanese companies. However, he warned that tariffs on automobiles would have a far-reaching impact, particularly since many Japanese companies manufacture in Mexico and Canada, exporting vehicles to the United States from there.

Tokura also raised concerns over declining predictability in business conditions, which he said could lead to hesitancy in future investments.

Japan is home to the world’s largest carmaker, Toyota, and its automotive sector significantly influences industries such as steel, parts manufacturing, and microchips. Of Japan’s 21.3 trillion yen (£145 billion) in US-bound exports in 2024, cars and other vehicles accounted for roughly one-third.

By RSS/AFP