15% Tariff on Japan Brings Both Opportunity and Old Controversies Back

Tariffs on Japan set at 15%

On July 31, President Trump signed an executive order specifying new rates for reciprocal tariffs on imports from more than 70 countries, set to take effect on August 7. While tariffs ranging from 10% to 41% were imposed on various countries, Japan’s tariff was settled at 15%.

Japan’s chief negotiator was Minister of Economy, Trade and Industry Ryosei Akazawa (64). Over roughly three months, Minister Akazawa traveled to the U.S. eight times, negotiating energetically. On several occasions, he negotiated directly with President Trump and even traveled to the U.S. four weeks in a row, showing remarkable stamina.

On July 19, 2025, Minister Akazawa appeared at the Osaka-Kansai Expo. Coinciding with the U.S. National Day at the Expo, a U.S. presidential delegation—including Treasury Secretary Bessent, Deputy Secretary of State Landau, and Labor Secretary Chavez de Remer—visited the Expo grounds.

As the guide, Minister Akazawa participated in the official National Day ceremony, toured the American Pavilion and the Japan Pavilion with the delegation, and hosted a luncheon, creating a relaxed atmosphere throughout the day.

Although no tariff discussions took place on that day, just two days later, Minister Akazawa traveled to Washington. Upon arrival, he held more than three hours of talks at the private residence of Commerce Secretary Latnick, who even conducted a mock negotiation session. Thanks to this guidance, the initially proposed 25% reciprocal tariff was eventually settled at 15%.

After discussions with President Trump and others, Minister Akazawa posted on X: “#MissionAccomplished,” signaling the conclusion of the series of tariff negotiations.

Toyota also shows interest in re-imported cars

The import of U.S. cars into Japan, which President Trump repeatedly pressed Japan on, is now set to include re-imported cars at the government’s request.

These are models primarily produced by major manufacturers like Toyota for the U.S. market. They include vehicles no longer sold domestically, such as the Camry, as well as U.S.-exclusive models like the Tacoma, Tundra, and Sienna—cars that maintain strong popularity among enthusiasts. In Japan, some are already available through parallel imports or specialized re-import dealers.

Toyota’s chairman, Akio Toyoda, has also expressed interest in domestic sales, stating he wants to leverage Toyota’s domestic sales network to distribute them. On social media, car enthusiasts reacted with comments such as “It’s great if we can easily buy re-imported cars” and “I wonder if right-hand drive versions will be available,” showing a variety of responses.

In 1996, to ease the U.S.–Japan trade imbalance, Toyota introduced the GM Chevrolet Cavalier—similar in size to Japanese cars—as an OEM model, selling it domestically as the Toyota Cavalier. However, it became unpopular, and as a result, the National Police Agency adopted it nationwide as undercover patrol cars funded by public money. For some, the Cavalier became synonymous with undercover car, leaving a lasting memory.

Although circumstances differ, the Suzuki Kizashi—developed mainly for North America but also sold in Japan—has ended up in a similar position. While there is certainly a market for re-imported cars, one can only hope it does not become another dark chapter like the Cavalier.

Opaque Standards of Trump’s Tariffs

Meanwhile, on July 23, President Trump announced on social media that “Japan has also agreed to purchase several billion dollars’ worth of defense equipment.” Although the Japanese government had indicated that the tariff issue and defense spending were separate matters, in practice the negotiations appear to have treated them as linked.

Currently, Japan procures about $14 billion annually in defense equipment, and an additional $3 billion is expected, bringing the total to $17 billion. Planned or already delivered items include Tomahawk cruise missiles, F-35 fighter jets, AAV7 amphibious vehicles, V-22 Ospreys, as well as various weapons, equipment, and ammunition. Delivery schedules may be influenced by the U.S. side’s convenience.

Treasury Secretary Bessent stated, “We will review the tariff situation quarterly, taking into account Japan’s compliance with the agreement, and depending on the results, tariffs could revert to 25%.”

The exact criteria remain unclear, leaving the possibility that decisions could be entirely at President Trump’s discretion, causing frustration among those involved due to the opaque nature of the situation.