Newly imposed U.S. ‘reciprocal’ tariffs may be at odds with Japan deal; proposed pharma levy sparks concerns

The administration of U.S. President Trump published a document on its reciprocal tariffs in the U.S. Federal Register on Wednesday and explained that new special provisions would apply only to the European Union, not to Japan or any other country.

The Yomiuri Shimbun

The Yomiuri Shimbun

The Japan News

tt.jpg

File photo of economic revitalization minister Ryosei Akazawa. PHOTO: THE YOMIURI SHIMBUN

August 8, 2025

TOKYO – The United States imposed new “reciprocal” tariffs on Japan and about 70 other countries and regions at 12:01 a.m. on Thursday (1:01 p.m. in Japan).

Economic revitalization minister Ryosei Akazawa held a 90-minute meeting with U.S. Commerce Secretary Howard Lutnick on Wednesday in Washington, during which he urged the United States to swiftly implement the terms of a bilateral trade deal.

During the talks, Akazawa reaffirmed the details of the trade agreement between Japan and the United States, including special measures for reciprocal tariffs and a reduction in automobile tariffs.

This was Akazawa’s ninth visit to the United States for tariff negotiations and the first since the two countries reached an agreement on July 22.

The administration of U.S. President Donald Trump published a document on its reciprocal tariffs in the U.S. Federal Register on Wednesday and explained that new special provisions would apply only to the European Union, not to Japan or any other country.

According to the Japanese government, it had agreed with the U.S. government on the following special provisions: For items with tariff rates of less than 15%, the total rate including the reciprocal tariff would be set at 15%; for items with tariff rates of 15% or more, the reciprocal tariff would not be applied.

However, neither the executive order signed by Trump nor the Federal Register document dated Aug. 6 mentioned these special provisions for Japan.

As it stands, 15% may be being added to existing tariffs, as for other countries and regions aside from the EU. For example, the tariff rate for textiles exported from Japan was 7.5%, but now could be 22.5%. There should not have been any change to the tariff for beef, which was 26.4%, but there are concerns that the tariff has been increased to 41.4%.

Because of this issue, Akazawa requested a swift correction to the document.

Akazawa also discussed the auto tariff, requesting that the rate is reduced from the current 27.5% to 15%, as agreed, at an early date. The implementation period is still uncertain. He did not disclose the U.S. side’s reaction.

Akazawa will stay until Friday to continue coordinating with the United States.

Under the new tariffs, Japan, the EU and South Korea face a 15% levy; the United Kingdom and others face the lowest rate of 10%; and Syria faces the highest rate of 41%.

In an interview with CNBC on Tuesday, Trump said he would announce sector-specific tariff rates on pharmaceuticals and semiconductors next week. He said that tariffs on pharmaceuticals would be raised in stages and could reach as much as 250%.

The United States imports many, mainly generic, drugs from India and China, and some have pointed out potential security concerns. Pharmaceutical exports from Japan to the United States amounted to about ¥440 billion yen in 2023, and if these tariffs are actually implemented, the industry could be hit hard just like the auto industry.

Hayashi: No discrepancy
Chief Cabinet Secretary Yoshimasa Hayashi told reporters on Thursday, “We have been confirming with the United States that there is no discrepancy regarding the recognition [of the contents of the agreement].”

He added that Japan and the United States would “communicate at various levels and work for the agreement’s steady implementation.”

scroll to top