Tokyo urges the U.S. to comply with trade terms; 15% comprehensive tariffs imminent

Investing.com — Japan has officially requested guarantees from the United States that Tokyo will not be marginalized by Washington’s latest trade measures. The appeal comes as Japan seeks to protect the favorable terms of its hard-won trade agreements. Japanese Economy and Industry Minister Akazawa Ryohei urged U.S. Commerce Secretary Howard Lutnick on Friday to exempt Japanese goods from the new 15% comprehensive tariffs.

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The USD/JPY currency pair responded to rising trade uncertainties, climbing to 157.80 as of 16:58 Eastern Time (21:58 Beijing Time). The Nikkei 225 index rebounded at the close, ending at 55,620.84 points, up 0.62%, despite a weekly decline of over 5%.

Impact of Tariff Stacks and Supreme Court Ruling

This request comes after ongoing legal and trade fluctuations. In February, the U.S. Supreme Court invalidated several tariffs imposed by former President Donald Trump, prompting the government to swiftly implement new baseline tariffs of 10%.

The new tariffs could be increased to 15%, potentially stacking on top of existing tariffs, which would undermine a key provision of last year’s agreement.

Under the 2025 agreement, Japan secured a cap of 15% on auto tariffs, significantly lower than the previous 27.5%. The deal was contingent on Japan’s commitment to invest $550 billion in U.S. infrastructure and energy sectors. Akazawa emphasized that Japan’s treatment “should not be less favorable than the agreement reached last year.” He pointed out that any deviation would significantly raise costs for Japan’s key export sectors.

Investment Commitments and Nuclear Cooperation

Despite tensions over tariffs, both officials highlighted ongoing economic cooperation. Akazawa and Lutnick discussed progress on Japan’s $550 billion investment pledge, including a second round of projects focused on critical minerals and energy security.

Reports indicate that a major nuclear project involving Westinghouse is currently under review for inclusion in the second phase of the agreement. These discussions follow the first round of a $36 billion package covering offshore drilling and natural gas production.

The talks between the two officials laid the groundwork for Japan Prime Minister Sanae Sato’s high-stakes visit to Washington on March 19. The U.S. Department of Commerce confirmed the meeting on social media, but notably did not mention the requested tariff exemptions.

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