Japan has voiced disappointment after failing to secure an exemption from U.S. President Donald Trump’s newly imposed 25% tariffs on steel and aluminum imports. The decision has raised concerns about potential economic consequences and trade uncertainty between the two allies.
Chief Cabinet Secretary Yoshimasa Hayashi called the move “regrettable”, emphasizing that trade restrictions of this magnitude could significantly impact not only the Japan-U.S. economic relationship but also the global economy and multilateral trade systems.
Japan Seeks Exemptions, Warns of Broader Economic Impact
While Japan exported approximately 31.5 million tonnes of steel in 2024, only 1.1 million tonnes—around 4% of total U.S. steel imports—were shipped to the United States. Officials argue that these exports do not pose a threat to U.S. national security but instead play a vital role in strengthening American manufacturing competitiveness.
“Imports of Japanese steel and aluminum products won’t harm U.S. national security. Rather, our high-quality products are difficult to replace and essential to the U.S. manufacturing industry,” Hayashi stated.
Economy, Trade, and Industry Minister Yoji Muto raised concerns about the tariffs during a visit to Washington this week, requesting exemptions for Japan’s metal and automobile industries. U.S. officials acknowledged Japan’s importance as an economic partner but have yet to grant any exemptions.
Concerns Over Auto Tariffs and Business Uncertainty
While Japanese officials believe the direct impact of the steel and aluminum tariffs will be limited, they are more concerned about potential tariffs on automobiles, which could have far-reaching consequences. Japan’s automotive sector, anchored by top manufacturers such as Toyota, is deeply integrated with North American supply chains, with many companies operating production facilities in Mexico and Canada and exporting to the U.S. from there.
Masakazu Tokura, chairman of the Japan Business Federation, warned that auto tariffs would pose a significant challenge. “The biggest problem of all is the decline in predictability for business,” he said, adding that the uncertainty could make companies hesitant to invest.
With Japan’s automobile industry influencing a broad range of sectors, from steel and microchips to employment and exports, officials are watching closely for further developments as trade tensions with the U.S. continue.
