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Japan’s leading trade negotiators say the US has pledged to amend its “very disappointing” surveillance to ensure that the largest companies last month do not face tariffs exceed those agreed last month.
Ryosei said the US has pledged to avoid “studying” tariffs.
Japan believed that exports to the US would be charged up to 15% if the tariffs on existing goods were below that rate and were not faced with additional taxation on goods that would be taxed at a higher level.
But last week’s drastic executive order was only exempt by the EU for submitting new tariff levels to US trading partners, stacking his “mutual” tariffs along with existing taxes, causing Japan’s panic and frustration.
“It is extremely unfortunate that an order has been issued and implemented in conflict with the US-Japan Agreement,” Akazawa said on Thursday with Treasury Secretary Howard Lutnick and the Treasury Department of Scott Bescent following a meeting in Washington.
Akazawa said US authorities agreed to issue an amendment enforcement order that clarifies Japan’s exemption from stacked tariffs, and at the same time agreed to simultaneously formalize reductions in automobile tariffs from 27.5% to 15% in line with the state trade agreement.
After pledging to invest $5500 billion in the US, Japan has secured tariff cuts from Trump’s first 25% level of extinction. However, details of the transaction remain significantly different in perceptions of what was agreed to have summarised the uncertainty for the largest exporter of Asia’s country.
For example, Japanese beef exporters could be liable for a 41.4% tariff on US transport, and as Japan believed, existing tax rates added to the existing rates of 26.4%, rather than the latter level.
Opposition leaders are urging Japanese Prime Minister Isba, who has put great pressure on him to step down after his third election ability, to issue a joint statement with the United States to clarify the terms of the tariff contract.
The US did not respond immediately to a meeting with Akazawa and has not commented on whether it intends to amend the executive order.
The Redzawa push came the day after the Japanese automaker, led by Toyota, revealed that it had paid $5.3 billion in tariff fees in the three months leading up to June.
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Despite the blow from tariffs, Japanese stocks were on track to finish the week at record highs. After strong revenue from companies including Sony and SoftBank, the country’s Topix has surpassed the 3,000 level for the first time.
On Thursday, Sony reduced the impact of the one-year impact of tariffs from 100 billion yen prior to the trade agreement to 70 billion yen.
However, analysts at Morgan Stanley, the highest percentage in the last decade, said 91% of Japanese companies remained full-year forecasts, rising guidance and only 6% revised downwards 4%.
However, not a sign of confidence, analysts said the lack of revision was due to uncertainty over the trade war.
