Japan says U.S. tariffs risk impacting their bilateral economic ties

Japan said on Wednesday it was "regrettable" that the country had not been granted an exemption from U.S. President Donald Trump's steel and aluminum tariffs of 25 percent.

Asked if Japan was considering retaliatory measures, top government spokesperson Yoshimasa Hayashi said the two nations would continue to discuss details of the duties, which came into force at midnight U.S. time (0400 GMT Wednesday).

"Widespread measures to limit trade risk having a significant impact on the Japan-U.S. economic relationship as well as the world economy and multilateral trade system," Hayashi told reporters.

"That Japan was not excluded from the imposition of additional tariffs is regrettable," he said.

Japan exported 31.4 million tonnes of steel in 2024, of which 1.1 million tonnes went to the United States.

That corresponds to around four percent of U.S. steel imports, according to Washington.

"Imports of Japanese steel and aluminum products won't harm U.S. national security, but rather, our high-quality products are difficult to replace and essential to strengthening the competitiveness of the U.S. manufacturing industry," Hayashi added.

Japan's products "are also contributing greatly to U.S. industry and employment," he said.

Economy, Trade and Industry Minister Yoji Muto said in Washington this week he had asked U.S. officials to exempt Japan from metal and upcoming vehicle tariffs.

"During Minister Muto's U.S. trip, Washington expressed its position that it considers its relationships with Japan a priority and that Japan's investment in the United States as well as the role it plays in the U.S. economy, such as through employment, are valued," Hayashi said.

Japan is home to the world's top-selling carmaker, Toyota, and the health of the auto industry impacts many of its industrial sectors, from parts manufacturing to steel and microchips.

Of its 21.3 trillion yen ($145 billion) of U.S.-bound exports in 2024, cars and other vehicles accounted for roughly a third.