Disputes Emerge Over U.S.-Japan Trade Deal as Tokyo Slams “Last-Minute Add-Ons,” Trump Responds Firmly

TradingKey – Two weeks after the U.S. and Japan reached a trade agreement, disputes over key details have surfaced. On August 7, Japan’s chief negotiator Ryo Akazawa stated that the U.S. intends to impose a 15% tariff on Japanese goods in addition to existing duties, rather than consolidating them into a flat 15% rate as previously agreed. This change would subject Japanese products to significantly higher tariffs than initially expected.

Akazawa emphasized that Washington had earlier pledged a single 15% tariff rate. The new plan, which layers additional tariffs on top of existing ones, contradicts the consensus both sides had reached, and Tokyo has formally requested that the U.S. reverse course. He also noted that while both nations had agreed to reduce tariffs on automobiles and auto parts to 15%, the U.S. has yet to provide a clear implementation timeline.

Another flashpoint in the talks is Japan’s proposed $550 billion investment in U.S. industries. U.S. officials claim Japan has committed the funds to support American manufacturing, with the U.S. expected to retain 90% of the proceeds. However, Japan argues the funds would primarily come from government-backed loan agencies, would be allocated to specific projects, and the final amount would likely fall short of the stated $550 billion.

In a public statement this week, former President Donald Trump declared, “The money Japan promised belongs to the United States,” adding that America would “control where the investment goes.” His remarks drew criticism from Tokyo, which accused the U.S. of exaggerating the scope of the agreement.

Analysts suggest the current dispute may go beyond technical misunderstandings, indicating a fundamental difference in how both parties interpret the deal. Without timely clarification, the disagreement could pose deeper challenges to bilateral economic cooperation.