Japan has officially requested an exemption from US President Donald Trump’s proposed 25 per cent tariffs on steel and aluminium, as well as other reciprocal tariffs, according to a report from Tokyo-based Kyodo News.
Meanwhile, Vietnam is prepared to engage with the United States to discuss the new tariffs on steel imposed by Washington, aiming to avoid the risk of additional duties, as stated by a spokesperson for its foreign ministry.
Japanese Foreign Minister Takeshi Iwaya made the request during a brief exchange with US Secretary of State Marco Rubio on the sidelines of the Munich Security Conference. Iwaya also expressed Japan’s eagerness to hold high-level security talks between the foreign and defence ministers of both nations “at an early date.”
According to a statement from Japan’s Foreign Ministry, the two diplomats agreed to maintain close communication to further strengthen economic relations between the US and Japan.
US-Japan’s past five years of trade history
Between 2020 and 2024, the United States has experienced noticeable dips and floats in its aluminium imports from Japan. In the five-year period, a sharp decline was witnessed in 2020, when imports dropped to 17,584 tonnes, which was quite a significant drop from the preceding year.
This slump is, on the one hand, majorly attributed to disruptions in global supply chains and weakened industrial demand during the COVID-19 pandemic.
Meanwhile, trade agreements between the two nations played a crucial part. The US and Japan announced on September 26, 2018, they would begin negotiations for a US-Japan Trade Agreement. On October 16, 2018, USTR officially notified Congress that it intended to start negotiations following the completion of necessary domestic procedures. This began a Congressionally-mandated 90-day consultation period under the Trade Promotion Authority prior to the launch of negotiations.
Public comments on the negotiating objectives for a trade agreement were due on November 26, 2018, and detailed negotiating objectives were released on December 21, 2018. Negotiations started in April 2019. On October 7, 2019, the United States and Japan signed the US-Japan Trade Agreement and the US-Japan Digital Trade Agreement. Following the finalisation of domestic procedures, both agreements entered into force on January 1, 2020.
In 2021, the market witnessed recovery as imports surged to 49,165 tonnes. The upward momentum continued into 2022, with imports reaching a peak of 51,754 tonnes—the highest level recorded during the five-year period.
However, this upward trajectory was not long sustained as in 2023, US aluminium imports from Japan fell sharply to 28,079 tonnes.
The downturn extended into 2024, with imports slipping further to 21,193 tonnes, marking the second consecutive year of decline. Market observers suggest that rising trade tensions, evolving supply chain strategies, and efforts to diversify import sources contributed to this downward trend.
Trump’s tariff measures are part of his “America First” trade policy, which has sparked concern among key US allies and trading partners.
Last week, Trump signed proclamations imposing 25 per cent tariffs on steel and aluminium imports, set to take effect on March 12.
The US is one of Japan’s largest trading partners, with Tokyo exporting a wide range of products, including automobiles and electronics. In 2023, Japan recorded an 8.64 trillion yen ($57 billion) trade surplus with the US, according to Japanese government data.
Indonesia’s trade context
The industrial hub in Southeast Asia was impacted this week by Washington’s new 25 per cent tariffs on aluminium and steel, which it primarily exports to the United States.
The imports have already been in deflation for the past five years, from 2020 to 2024. The US has witnessed a continuous decline in aluminium imports from Indonesia. From a notable drop in 2020, as imports fell to 25,827 tonnes, to the succeeding year’s modest recovery as imports edged up to 27,310 tonnes, US-Indonesia has been in turmoil.
However, the rebound was short-lived, as imports dropped again in 2022 to 30,266 tonnes. The market faced headwinds from supply-side constraints and shifting trade policies, contributing to the stagnation in import volumes.
The downward trend accelerated in 2023, with US aluminium imports from Indonesia declining sharply to 23,717 tonnes.
The trend continued into 2024, with imports falling further to 17,659 tonnes—the lowest level recorded in the five-year period.
The situation could further deteriorate by reciprocal duties threatened by US President Donald Trump. A spokesperson stated, “Vietnam is prepared to engage in constructive discussions with the US.” This response came during a regular press conference when asked about the potential risks of new tariffs for Vietnam. The spokesperson also mentioned that Vietnam is open to discussing the new tariffs on steel and finding solutions that benefit both parties.
