Japan hopes to stick to existing US deal in face of Trump's new tariffs

Japan said on Tuesday it had asked the United States to ensure its treatment under a new tariff regime would be as favourable as in an existing agreement, treading carefully to avoid rocking the boat before the prime minister's U.S. visit next month, Reuters reported.

While U.S. President Donald Trump's latest measures could increase the tariff cost for some Japanese export items, Japan's trade minister and U.S. Commerce Secretary Howard Lutnick affirmed on a call on Monday that the two countries would implement the trade deal struck last year "in good faith and without delay," the Japanese trade ministry said.

Trump, following the U.S. Supreme Court's decision on Friday to strike down his tariffs under the International Emergency Economic Powers Act (IEEPA), applied a temporary 15% duty on imports from all countries, the maximum allowed under a law that is separate from the IEEPA.

Trump also warned countries that if they backed away from their trade deals with the U.S., he would hit them with higher duties under different trade laws.

Trade minister Ryosei Akazawa told a Tuesday briefing that some Japanese exports, which are currently subject to reduced tariffs under the deal, may face higher levies, should the new tariffs be "stacked" upon the existing levies. A trade ministry official said items that could theoretically face higher tariffs under Trump's new policy were those that enjoyed tariffs lower than 15% under the most favoured nation status.

Japan requested treatment that is equally favourable to the trade deal that was agreed last year, Akazawa added.

In July, the U.S. and Japan agreed a deal to cut tariffs on autos and other goods to 15%, while Japan agreed to a $550 billion package of U.S.-bound loans and investment.

Akazawa and other officials refrained from commenting on the U.S. Supreme Court decision, only saying they would closely examine its details.