Trump Adjusts Tariffs Affecting Japan's Competitive Edge

The US Supreme Court on February 20 struck down broad tariffs imposed under the IEEPA, prompting President Donald Trump to impose a temporary 10% across-the-board tariff under Section 122 and signal a possible rise to 15%. Japan, which negotiated a 15% cap on auto and parts tariffs in July 2025 and pledged $550 billion in US investments, may see its export competitiveness narrowed and is reassessing investment and policy responses.