US refused to exempt Japan from tariffs: Report

By Berk Kutay Gokmen

ISTANBUL (AA) — The US has rejected Japan's request for complete exemption from tariffs during recent negotiations, Kyodo News reported Monday, citing undisclosed sources.

According to sources, US officials told Japan’s chief negotiator, Ryosei Akazawa, during their meeting in Washington last week that the Trump administration is only willing to offer a reduction, not a full exemption, of the 14% country-specific tariff, which has been suspended until early July.

During the second round of negotiations, Washington emphasized it would only consider extending the 90-day suspension or reducing the 14% tariff based on how the talks progress, the sources said.

Tokyo has been pushing for the complete elimination of the 24% "reciprocal" tariffs currently under a 90-day reprieve, along with an additional 25% tariff on cars and a separate 25% duty on steel and aluminum.

Effective Saturday, the US imposed an additional 25% tariff on major auto parts, including engines and transmissions, though some relief measures will be in place for two years.

Japanese Premier Shigeru Ishiba on Saturday expressed dissatisfaction with the imposition of additional tariffs on auto parts, saying that no "common ground" has been reached with the US regarding tariffs.

The Trump administration imposed 24% tariffs on Japanese imports as part of reciprocal tariffs on imports from all countries but granted a 90-day reprieve to all affected nations, except China.