Japanese emergency "exemption" application: requesting the United States to cancel the 15% tariff hike in order to mitigate the trade impact.

Japan has requested the United States to exempt its planned tariff hike (from 10% to 15%) - highlighting concerns that higher tariffs could hit the Japanese car industry. Japanese Trade Minister Akira Amari, in Washington, met with U.S. Secretary of Commerce Howard Lutnick on March 19, ahead of the U.S.-Japan leaders' summit and told reporters, "We have requested that Japan not be included in any list of countries with tariffs raised to 15%." He also emphasized that Japan's treatment "should not be less favorable than under last year's U.S.-Japan agreement." Tokyo's request this time highlights its concerns that higher tariffs could undermine the concessions it made in 2025, especially in its largest manufacturing sector - the automotive industry. Although the U.S. Supreme Court has ruled most of Trump's previous tariff policies invalid, tariffs on cars, steel, and aluminum remain in effect - which means Japan's gains would be very fragile if the U.S. expands the scope of taxation. These negotiations are not only about trade balance but also about the Strategic Investment Initiative (SII), a $550 billion plan aimed at directing Japanese funds into projects in the United States. According to the agreement, if Tokyo fails to provide funds on time, the U.S. can raise tariffs. Japan has pledged to provide up to $36 billion for the first round of financing, including the construction of a 9.2 GW natural gas power plant in Ohio. Local media reported on Saturday that Tokyo is considering providing around 15 trillion yen ($951 billion) for the second round of financing, with Toshiba's nuclear reactor being one of the core projects. Amari said, "We have had in-depth ministerial discussions on the Strategic Investment Initiative and confirmed that we will continue to coordinate closely and jointly build future projects." He added that while confirming progress on the first round of investment, "the focus of this meeting is on the second round and beyond projects."