Is Japan about to do it own tariff taco? Ishiba to ease demand for US auto tariff repeal? | Forexlive

Japan is softening its stance on the 25% U.S. auto tariff, according to the Asahi newspaper, and is no longer pushing for a full repeal. Instead, Tokyo is proposing a more flexible framework that would see tariff rates reduced depending on how much a country contributes to the U.S. auto sector.

The proposal, reportedly put forward by Japan’s chief tariff negotiator Ryosei Akazawa—currently in Washington for a fifth round of trade talks—would tie tariff relief to metrics such as the number of vehicles Japanese carmakers build in the U.S. and how many are exported from the U.S. to global markets. Akazawa is meeting with senior U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, as part of ongoing negotiations.

This shift in approach reflects Japan’s effort to strike a more pragmatic deal, aligning with broader U.S. goals of strengthening domestic manufacturing while seeking tariff relief for its automakers.

Reuters conveying the report from Asahi

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