U.S.–Japan trade deal faces dispute over terms

Following a trade agreement in which the United States and Japan pledged mutual 15 percent tariffs and Japan committed to investing $550 billion in the U.S., tensions are mounting between the two countries over how the deal will be implemented. The U.S. has issued warnings that tariffs could revert to their original levels if the agreement is not upheld, while Japan argues that no such enforcement terms were discussed.

On Thursday, Japanese Economic Revitalization Minister Ryosei Akazawa told reporters that he had “visited the U.S. eight times and spoke with President Donald Trump and key secretaries,” but did not recall any discussions on how implementation would be monitored. His remarks came in response to U.S. Treasury Secretary Scott Bessent, who said in a Fox News interview on Wednesday that the U.S. would evaluate the deal’s implementation quarterly and could restore the 25 percent tariffs on automobiles and other products if President Trump was not satisfied.

Although the agreement reduces tariffs from 25 to 15 percent, key details remain unresolved. These include when the lower rates will take effect and how Japan’s pledged investments in the U.S. will be structured. One particular source of contention is Japan’s commitment to raise annual contracts with U.S. defense contractors from $14 billion to $17 billion. Washington says the increase applies only to new contracts, while Tokyo maintains it includes existing agreements as well.

Unlike most international trade deals, this agreement lacks a jointly issued summary document, creating ambiguity and the potential for future conflict. Japanese officials are especially concerned that President Trump might issue an executive order that heavily favors U.S. interests. The Nihon Keizai Shimbun reported that Japan hopes to publish a formal summary of the deal as early as next week.


In-Chan Hwang hic@donga.com