Japan faces major trade setback with 24% tariff on US exports starting soon

Japan is set to face a significant economic challenge as a 24 per cent tariff on its exports to the US will take effect on April 9.

While Japanese policymakers have yet to outline specific retaliatory actions, they have made it clear that no options are off the table in response to the tariff hike, Caliber.Az reports via foreign media.

Prime Minister Shigeru Ishiba, speaking over the weekend, emphasised Japan’s intention to engage in a comprehensive negotiation with US President Donald Trump.

"When we negotiate with the U.S., we want to present a package. That will take some time, but we will make it a success," Ishiba told reporters, underlining the importance of a broad agreement on various trade matters.

Ishiba suggested that Japan’s proposal could include key sectors such as liquefied natural gas, automobiles, agriculture, and national security. He added that he plans to speak directly with President Trump this week to advance these discussions. Meanwhile, President Trump, addressing the situation, denied accusations that he was intentionally provoking a market selloff. 

He defended his approach, stating that market reactions were unpredictable. "Sometimes you have to take medicine to fix something," Trump remarked, referring to the market losses that have resulted from the ongoing tariff measures, which have wiped trillions of dollars off the value of US companies. Trump also mentioned that over the weekend, he had been in talks with global leaders to seek a resolution, claiming that "they're dying to make a deal" with the US. As the trade dispute continues to escalate, markets globally are expressing concern that the tariffs could trigger a recession. 

Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab, noted that this fear is contributing to a "risk-off" sentiment, with investors wary of the potential damage to Japanese companies operating in the US. All eyes are now on China’s stock market as it reopens after an extended weekend. In retaliation for Trump’s latest tariffs, China has implemented matching tariffs on all American goods and imposed export controls on rare earths, intensifying the trade war and further complicating global markets.

US President Donald Trump has recently announced the implementation of "reciprocal" tariffs against foreign trade partners, affecting a total of 185 countries. The minimum base tariff rate will be set at 10 per cent, but specific tariffs for certain nations will be calculated individually based on the US trade deficit with those countries. For instance, tariffs on China will reach 34 per cent, while the EU will face a 20 per cent tariff rate.

By Naila Huseynova