Trump Escalates Trade Pressure on Japan with 25% Tariffs, Targeting Steel and Auto Sectors in America First Strategy
30 January 2026

Trump Escalates Trade Pressure on Japan with 25% Tariffs, Targeting Steel and Auto Sectors in America First Strategy

Japan Tariff News and Tracker

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President Trump ramped up pressure on Japan with warnings of 25% tariffs during a White House cabinet meeting on January 29, according to DWS News, tying the move to a historic U.S. steel production surge that outpaced Japan for the first time in 26 years. Trump highlighted how tariffs are driving factories back from Japan, Mexico, Canada, and Europe to avoid duties of 15% to 25% or higher, crediting the policy for reviving American manufacturing as steel plants reopen and expand.

The Baker Botts Trump Tariff Tracker details an Executive Order Implementing the US-Japan Trade Deal amid broader reciprocal tariffs averaging 10% globally, with country-specific rates from 15% to 50%, though Canada and Mexico are exempt. Auto imports face 25% duties since May 2025, but negotiations have reduced rates on parts to 15% for Japan by year's end, per Wikipedia's overview of second-term tariffs. J.P. Morgan Global Research pegs the effective U.S. tariff rate at 15.8%, up sharply from 2.3% in 2024, fueling talks of deals with Japan alongside Korea and India.

Trump's strategy signals tougher America-first trade, with Japan pressed to invest in U.S. industry for tariff relief, as noted by the Peterson Institute for International Economics. A Japanese trade official lamented the unpredictability, telling Wikipedia, "No matter who I talk to in the US administration, none of them knows what Trump is thinking." Politico reports investor jitters linking Japan's fiscal shocks to Trump's policies, weakening the yen and lifting U.S. debt yields.

These developments could reshape U.S.-Japan ties, boosting domestic steel and autos while challenging Tokyo's exporters. Stay tuned as negotiations evolve.

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