US Signing of Japan Tariffs: Reject Self-Righteousness and Fulfill Agreement
U.S. President Donald Trump signed an executive order putting into practice an agreement regarding U.S.-Japan tariffs. At the time of the agreement in July, the time frame for the American side to fulfill it was not specified, and even though there is some remaining ambiguity in the details of the agreement, the move to implement it has finally begun.
With the signing, it is expected that within two weeks the U.S. will reduce tariffs on Japanese cars from 27.5% to 15%. The measures to reduce reciprocal tariffs with Japan will also be retroactively applied back to Aug. 7. At the time of the agreement, both governments confirmed a memo concerning Japan's promise to invest in the U.S., and they issued a joint declaration.
The signing was a settled matter, but excessively late. The time it took to be signed, in spite of Japan's requests, was caused because of the tactics of Japanese Prime Minister Shigeru Ishiba's administration, which moved too fast on the written agreement without hammering out the details.
Concerning Japanese companies, there is great significance in reducing the uncertainty that Trump's tariffs have brought about. Even so, it does not change the current state of affairs, in which exports to America are hit with remarkably high tariffs compared to before.
There is considerable concern that the Trump tariffs will reduce Japan's gross domestic product. A broad range of smaller companies that support Japan's supply chains are also affected. The government should take thorough steps to ensure that the situation will not lead to effects such as deteriorating employment rates and reconsideration of wage increases.
Until now, there has been no indication of a time frame for reducing tariffs on automobiles, and, contrary to the agreement, special exemptions on mutual tariffs have not been applied. There is a gap in explanations from the U.S. and Japan for things like the distribution of profits from Japanese investments in the U.S. These details should have been verified at the time of the agreement. Whether Japan has obtained advantageous conditions by postponing these details is questionable.
Now, both governments have specified plans for the expansion of Japanese imports and other matters. Expanded procurement of defense equipment and the importation of American rice will increase to within 75% of the minimum access. However, vigilance as the agreement is fulfilled is also necessary. The U.S. president will decide how to use the $550 billion investment in the U.S., based on recommendations from an “investment committee” chaired by the U.S. side. Could Japan be forced to take on bad investment projects without any objections?
The U.S. will be monitoring Japan's performance in fulfilling the agreement, and if it concludes that Japan is not complying, the possibility remains that the tariffs could once again be increased. Is there concern that from now on, Trump, who has repeatedly made judgments about Japan that are contrary to reality, will impose a self-righteous explanation? In which case, if this agreement is discarded, it could create future problems.
With the signing, it is expected that within two weeks the U.S. will reduce tariffs on Japanese cars from 27.5% to 15%. The measures to reduce reciprocal tariffs with Japan will also be retroactively applied back to Aug. 7. At the time of the agreement, both governments confirmed a memo concerning Japan's promise to invest in the U.S., and they issued a joint declaration.
The signing was a settled matter, but excessively late. The time it took to be signed, in spite of Japan's requests, was caused because of the tactics of Japanese Prime Minister Shigeru Ishiba's administration, which moved too fast on the written agreement without hammering out the details.
Concerning Japanese companies, there is great significance in reducing the uncertainty that Trump's tariffs have brought about. Even so, it does not change the current state of affairs, in which exports to America are hit with remarkably high tariffs compared to before.
There is considerable concern that the Trump tariffs will reduce Japan's gross domestic product. A broad range of smaller companies that support Japan's supply chains are also affected. The government should take thorough steps to ensure that the situation will not lead to effects such as deteriorating employment rates and reconsideration of wage increases.
Until now, there has been no indication of a time frame for reducing tariffs on automobiles, and, contrary to the agreement, special exemptions on mutual tariffs have not been applied. There is a gap in explanations from the U.S. and Japan for things like the distribution of profits from Japanese investments in the U.S. These details should have been verified at the time of the agreement. Whether Japan has obtained advantageous conditions by postponing these details is questionable.
Now, both governments have specified plans for the expansion of Japanese imports and other matters. Expanded procurement of defense equipment and the importation of American rice will increase to within 75% of the minimum access. However, vigilance as the agreement is fulfilled is also necessary. The U.S. president will decide how to use the $550 billion investment in the U.S., based on recommendations from an “investment committee” chaired by the U.S. side. Could Japan be forced to take on bad investment projects without any objections?
The U.S. will be monitoring Japan's performance in fulfilling the agreement, and if it concludes that Japan is not complying, the possibility remains that the tariffs could once again be increased. Is there concern that from now on, Trump, who has repeatedly made judgments about Japan that are contrary to reality, will impose a self-righteous explanation? In which case, if this agreement is discarded, it could create future problems.
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