Japan PM in call with Trump, reiterated Japan’s use on US tariffs

Japan’s foreign minister says:

• Japan PM in call with Trump reiterated Japan’s view on the US tariff measures
• Concluded to accelerate consultations between the ministers in charge to achieve mutual beneficial agreement.
• Exchange views on response to Israel’s recent attacks against Iran

Trump wants to increase tariffs on autos and other imports from Japan. Trump’s administration also wants Japan to open up their economy for more imported US goods. One problem is Japan is a nation of savers, while the US loves to spend and that makes the dynamics more difficult.

The U.S. is currently imposing tariffs on imported automobiles:

• A 25% ad valorem tariff on fully assembled foreign automobiles has been in effect since April 3, 2025, under a Section 232 national security order

• A corresponding 25% tariff on auto parts (such as engines and transmissions) took effect on May 3, 2025, with USMCA-compliant components temporarily exempted

• President Trump has signaled the possibility of increasing the 25% auto tariffs to further incentivize U.S.-based manufacturing and investment

This article was written by Greg Michalowski at www.forexlive.com.