On August 7, 2025, the US started applying new tariffs that surprised Japan. Instead of following what both sides had agreed on — that only goods with tariffs under 15% would be raised to 15% — the US added a 15% tariff on all Japanese imports, no matter the original rate.
Japan’s Economic Revitalization Minister, Ryosei Akazawa, responded quickly, saying the US made a mistake. He said both countries had clearly agreed that:
- If a product already had a tariff over 15%, no additional tax would be added.
- If it was under 15%, the total would be raised to 15% — not more.
Akazawa explained that he confirmed this deal in meetings with key US officials during his trip, but due to internal confusion in the US government, the wrong version of the tariff order was issued.
The US later admitted the mistake and promised to:
- Fix the executive order
- Refund any overpaid tariffs going back to August 7
- Lower tariffs on cars and car parts at the same time
So, even though there was no official written agreement, Japan chose not to push back too hard — partly to avoid a worse situation, like Trump raising tariffs to 25% instead.
A major reason for the confusion? The Japanese side negotiated with the US Commerce Department, but the tariff paperwork is handled by a different office, the USTR (US Trade Representative). And under Trump’s new administration, many top government jobs are still unfilled, so coordination was weak.
In short, the Japanese side was caught off guard, but it looks like things are now getting back on track.
by MagazineKey4532