Japan’s Trade Minister, Yoji Muto, will travel to the United States next week in a bid to secure exemptions from President Donald Trump’s escalating tariff campaign, Bloomberg reports.
The visit, scheduled for March 9-11, comes just before the expected implementation of Trump’s hefty tariffs on steel and aluminum, slated for March 12.
Tokyo is urgently seeking an exemption from the blanket 25% duty on metals. As the largest foreign investor in the US, Japan is also hoping to avoid Trump’s planned reciprocal tariffs, set to take effect on April 2. High on Muto’s agenda is the discussion of a proposed 25% tariff on foreign car imports, which could be announced on the same day.
Muto’s trip follows President Trump’s recent imposition of new tariffs on Canada and Mexico, albeit with a one-month reprieve for automakers, as well as the doubling of tariffs on China. Tokyo is closely monitoring these developments, given the presence of Japanese car manufacturers in Mexico and Canada and China’s importance as a key trading partner.
Japan is now one of many nations scrambling to mitigate the potential damage from the Trump administration’s protectionist policies. South Korea has also engaged in high-level talks, with Acting President Choi Sang-mok speaking with US Treasury Secretary Scott Bessent and Minister of Trade, Industry and Energy Ahn Duk-geun meeting with Commerce Secretary Howard Lutnick, all in an effort to ease the potential economic blow.
Like other nations, both Japan and South Korea face pressure to invest in the US rather than relying on exports. President Trump recently highlighted interest from Tokyo and Seoul in investing significantly in a proposed Alaskan pipeline project to transport natural gas.
The potential auto tariff poses a significant threat to the Japanese economy. Japanese companies also face vulnerability should Washington impose a 25% tariff on the chips and pharmaceutical sectors. Auto exports accounted for 17% of all outbound shipments from Japan last year, with more than a third destined for the US.
While the potential impact is concerning, it’s worth noting that Japanese manufacturers already produce more vehicles in the US than they export to the market. According to the Japan Automobile Manufacturers Association, Japanese carmakers produced 3.3 million cars in the US in 2023, exceeding the 1.5 million vehicles exported to the nation.
