Japan's industry minister Ryosei Akazawa met with U.S. Commerce Secretary Howard Lutnick in Washington, urging the United States not to impose higher tariffs than those agreed upon last year, as both countries prepare for a meeting between Japanese Prime Minister Sanae Takaichi and U.S. President Donald Trump scheduled for March 19 at the White House [1]. The talks, which lasted about two hours, also covered joint business projects and cooperation in energy, critical minerals, and artificial intelligence [1].
The U.S. Commerce Department stated that both sides reaffirmed their commitment to last month's deal, which included the first set of projects selected under a $550 billion investment pledge made by Tokyo in the summer of 2025, following months of tariff negotiations [1]. Japan agreed to invest $550 billion in U.S.-based strategic industries by the end of Trump's second term in January 2029, in exchange for lowered tariffs on Japanese imports [1]. The first three projects, valued at $36 billion, were announced a few days before the Supreme Court's ruling, including the construction of a gas-fired generating facility in Ohio, the largest of its kind in U.S. history, to power AI data centers [1]. The second batch of projects under discussion includes small modular reactors for AI data centers [1].
The meeting followed the U.S. Supreme Court's invalidation of Trump's sweeping global tariffs about two weeks ago, which has intensified confusion over the U.S. tariff strategy [1]. In response to the legal defeat, Trump announced a new 10 percent global tariff, effective February 24, relying on a different statute, and indicated plans to raise the rate to 15 percent, with consideration for more durable country-by-country duties during the 150-day temporary levy period [1]. Akazawa specifically requested that Japanese imports not be subjected to the envisaged 15 percent tariff or other potentially higher duties in the future [1].
Despite the legal setback for Trump's tariff agenda, Japan has shown willingness to adhere to the terms of the trade agreement reached in July last year [1].
CONCLUSION
Japan is actively seeking to prevent higher U.S. tariffs on its imports, emphasizing its commitment to a $550 billion investment deal and ongoing strategic cooperation. The uncertainty surrounding U.S. tariff policy following the Supreme Court ruling presents medium-level market risk, particularly for industries tied to AI and energy. The upcoming meeting between Prime Minister Takaichi and President Trump may provide further clarity on trade relations.