Japan and the USA have maintained a strong trade partnership, but recent developments—including new tariffs imposed by the USA—have introduced challenges. The U.S.-Japan Trade Agreement, signed in 2019, eliminated or reduced tariffs on $7.2 billion in U.S. agricultural exports and strengthened digital trade protections. However, the USA has recently imposed a 24% tariff on Japanese imports, prompting Japan to seek new trade negotiations.
Total Trade Volume (2024)
- $227.9 billion in total trade between Japan and the USA.
- Japan’s exports to the USA: $148.2 billion (up 0.7% from 2023).
- USA’s exports to Japan: $79.7 billion (up 5.4% from 2023).
- Trade deficit: $68.5 billion (favoring Japan).
Key Japanese Exports to the USA
Japan exports a variety of automobiles, machinery, and electronics to the USA. Here’s a breakdown:
| Product | Export Value (2023) |
|---|---|
| Cars | $42.1 billion |
| Auto Parts | $12.3 billion |
| Semiconductors | $9.8 billion |
| Industrial Machinery | $7.4 billion |
| Medical Instruments | $5.6 billion |
Major Japanese Companies Exporting to the USA
- Toyota (Automobile Manufacturing)
- Honda (Automobile Manufacturing)
- Sony (Electronics & Semiconductors)
- Panasonic (Consumer Electronics)
- Mitsubishi Heavy Industries (Industrial Machinery)
- Fujitsu (Semiconductors & IT Solutions)
Key USA Exports to Japan
The USA exports agricultural products, aircraft, and high-tech equipment to Japan.
| Product | Export Value (2023) |
|---|---|
| Aircraft & Aerospace Equipment | $9.2 billion |
| Corn & Soybeans | $6.8 billion |
| Medical Equipment | $5.1 billion |
| Pharmaceuticals | $4.7 billion |
| Semiconductors | $3.9 billion |
Major USA Companies Exporting to Japan
- Boeing (Aircraft & Aerospace)
- Intel (Semiconductors)
- Pfizer (Pharmaceuticals)
- Caterpillar Inc. (Heavy Machinery)
- John Deere (Agricultural Equipment)
Impact of New Tariffs
The USA has imposed a 24% tariff on Japanese imports. This has major implications for industries and employment:
Industries Most Affected
- Automobile Manufacturing: Japan exports $42.1 billion worth of vehicles to the USA, and tariffs could increase costs.
- Semiconductors: Japan’s $9.8 billion semiconductor exports face higher production costs.
- Agriculture: U.S. exports of corn and soybeans ($6.8 billion) to Japan may decline due to higher import costs.
Government Response
- Japan is negotiating new trade agreements with the USA to reduce tariff barriers.
- The Japanese government has expressed concern over punitive tariffs, stating they could harm investment and economic stability.
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