I am honored to send you this letter, which reflects the strength and commitment of our trade relationship and indicates that, despite the significant trade deficit between the United States and Japan, the United States is still willing to continue cooperating with Japan.
However, we have decided to move forward with your country only on the premise of more balanced and fair trade. Therefore, we invite your country to participate in the extraordinary Economy of the United States, the Number One Market in the World, by far. We have discussed U.S.–Japan trade relations for many years and have concluded that we must eliminate these long-standing and persistent trade deficits, which are caused by Japan’s tariffs, non-tariff policies, and trade barriers.
Unfortunately, our trade relationship is no longer reciprocal.
Starting August 1, 2025, the United States will impose a uniform tariff of 25 percent on all goods exported from Japan to the United States (excluding existing industry-specific tariffs). Any goods attempting to circumvent this tariff through re-exportation via third countries will also be subject to a higher rate.
Please understand that this 25 percent tariff is far below the level needed to bridge the trade deficit between the United States and Japan. As you know, if Japanese companies decide to build factories or produce related products within the United States, they will not be subject to this tariff. In fact, we will make every effort to expedite the approval process quickly, professionally, and routinely—in other words, it can be completed in just a few weeks.
If your country decides to raise tariffs on U.S. goods for any reason, then, whatever the number you choose to raise them by, will be added onto the 25 percent that we charge. Please understand that the United States is taking this series of tariff measures to correct the unsustainable trade deficit caused by Japan’s tariffs, non-tariff policies, and trade barriers over the years. This trade deficit has become a significant threat to the U.S. economy and even national security.