Japan says US 25% tariff is 'truly regrettable'

Japanese Prime Minister Shigeru Ishiba said on July 8 that the decision by the United States to impose a 25 percent tariff on Japan is "truly regrettable," adding that he would continue negotiations to seek a mutually beneficial trade deal.

The tariff rate is lower than what US President Donald Trump had threatened and opens the way for future bilateral negotiations, Ishiba said, as reported by Kyodo News.

Ishiba's statement came after US President Donald Trump announced that the country would impose 25 percent tariffs on goods imported from Japan and South Korea.

The tariff rate is one percentage point higher than the original "reciprocal tariffs" announced in April but lower than the 30-35 percent rate that Trump had threatened to impose on Japan on July 1.

Also, the 25 percent tariffs will become effective from Aug 1, rather than July 9 when the "reciprocal tariffs" were supposed to start following a 90-day pause.

In a letter addressed to the Japanese prime minister that he posted on Truth Social, Trump said the new tariffs will be separate from all other sectoral tariffs, according to Xinhua News Agency.

Japan currently faces a 25 percent US tariff on automobiles and auto parts, and a 50 percent tariff on steel and aluminum.

"Please understand that the 25 percent number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump said in the letter.

Ishiba said his government will continue protecting national interests in future rounds of talks and will make every effort to mitigate the impact of the imminent tariff hike on the Japanese economy.

"We will continue to engage in negotiations with the United States to explore the possibility of reaching a mutually beneficial deal while protecting our national interests," Ishiba was quoted by Kyodo News as saying at a tariff task force meeting.

Japan has been urging the US to focus on what the longtime allies can do together through investment rather than using tariffs to address the US trade deficit with Japan, which amounted to $68.5 billion in 2024. Yet the country has failed to reach an agreement with the US after rounds of ministerial-level negotiations.

Kelly@chinadailyapac.com