Tokyo: The US government will continue to impose its 50% tariffs on Japanese steel and aluminum, as confirmed by Japan's government. This decision comes as the two nations finalize a broader trade agreement that includes reciprocal tariffs and significant Japanese investments in the United States.

According to Anadolu Agency, Chief Cabinet Secretary Yoshimasa Hayashi explained that the steel and aluminum tariffs were not addressed in the recent tariff agreement announced by US President Donald Trump. Hayashi indicated that future discussions would involve addressing tariffs on steel and aluminum, as well as other tariff-related measures.

The newly finalized trade deal stipulates that Japan will implement 15% reciprocal tariffs on various US goods. President Trump announced on Truth Social that Japan would invest $550 billion in the United States, with the US receiving 90% of the profits. The agreement encompasses trade in automobiles, trucks, rice, and several agricultural products, with Trump stating that it would create hundreds of thousands of jobs.

Japan is expected to increase its rice imports from the US under its 'minimum access' system, which currently allows for the import of approximately 770,000 tons of tariff-exempt rice annually. Hayashi emphasized that any rice procurement would be based on domestic supply and demand considerations, and reassured that the agriculture sector would not be compromised.

In addition to the trade agreement, Trump announced plans to finalize a deal on liquefied natural gas (LNG) exports between the two countries. Japanese Prime Minister Shigeru Ishiba expressed support for the deal, highlighting that Japan would not be treated less favorably than other countries in future tariff considerations on essential goods like semiconductors and medicines.

Ishiba also noted that Japanese companies are set to invest in various US sectors, including semiconductors, medicines, steel, shipbuilding, critical minerals, aviation, energy, automobiles, AI, and quantum technology. He described the agreement as a crucial step for Japan's economic security.

The original steel tariff rate was scheduled to rise to 25% starting August 1, while Japan continues to face a 2.5% base levy on automobile exports to the US.