Japan says US tariffs cut company profits ‘day by day’

Japanese firm profits were declining “day by day” on Monday, according to Japan’s envoy for the upcoming tariff negotiations with the United States, who also urged a speedy resolution.

Prime Minister Shigeru Ishiba informed MPs on Monday that Ryosei Akazawa, the minister of economic revitalization, would travel to Washington for the talks this week.

Attempts by the government to obtain exemptions from the US tariffs, which include a 25 percent levy on the global auto industry that went into force in early April, have so far been unsuccessful.

Additionally, US President Donald Trump has postponed his plans to impose a separate 24 percent tax on Japanese imports.

“As some tariffs have already taken effect, Japanese companies’ profits are being cut day by day,” Akazawa said in parliament.

“The sooner (the issue is addressed), the better,” he said.

In Washington, Akazawa will reportedly issue a strong call for a review of Trump’s tariffs.

“I will do my best, bearing in mind what’s best for our national interests and what is most effective,” he said.

According to government sources cited by Japanese media, Akazawa is scheduled to meet with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer on Wednesday.

Vehicles made up over 28% of Japan’s 21.3 trillion yen ($142 billion) in exports to the US last year, and Japanese companies are the largest investors in the US.

Ishiba spoke with Singapore’s Prime Minister Lawrence Wong over the phone Monday afternoon on the effects of US tariffs and China’s counterattacks.

Ishiba informed Wong that Tokyo’s foreign ministry stated that “the current situation is serious for Japanese companies operating in Southeast Asian countries including Singapore.”

Ahead of his negotiations, Akazawa also stressed in an interview with the Yomiuri Shimbun daily published on Monday that it was important to gain an understanding of what the US side wants.

“We have to convey our message that we have serious concerns as to consistency with the World Trade Organization agreement and Japan-US trade agreement,” he said, echoing previous comments by Japan’s trade minister.

Akazawa also said he was ready to talk about developing liquefied natural gas (LNG) fields in Alaska if the US side raises the issue, according to the Yomiuri.

Trump said last month that Japan and South Korea are among countries looking to work with the United States on an LNG pipeline in Alaska.