TOKYO — Japan pressed the US to swiftly implement an agreed cut to auto tariffs and sought clarification on levies for other goods, as conflicting interpretations of the bilateral trade deal further pressured Prime Minister Shigeru Ishiba’s shaky administration.

In a meeting with US Secretary of Commerce Howard Lutnick in Washington on Wednesday, top trade negotiator Ryosei Akazawa urged the US to implement at an early date an agreed cut to US tariffs on Japanese auto and auto parts, Japan’s government said.

Mr. Akazawa also sought confirmation and “immediate execution” of the two countries’ agreement on US levies for other goods imported from Japan, the government said in a statement released on Thursday.

The meeting came hours before US President Donald J. Trump’s higher tariffs on dozens of trading partners kick in on Thursday, as Japan scrambles to clarify divergences with Washington on details of their bilateral trade deal.

Under the deal clinched last month, the US agreed to cut tariffs on Japanese car imports to 15% from levies totaling 27.5% previously but did not announce a timeframe for the change to take effect.

While the two agreed that US duties on most other Japanese goods will be cut to 15% from 25% effective on Thursday, a lack of written confirmation of the deal has led to confusion over whether the new 15% tariffs will be stacked on top of existing levies.

Japan argues the two countries had agreed its goods imported to the US would be exempt from such “stacking,” where they can be affected by multiple tariffs.

Speaking in parliament on Tuesday, Mr. Akazawa said Japan wants to make sure goods such as Japanese beef, which already carries tariffs above 15%, will not be charged the new 15% rate as an additional tariff.

But a Federal Register attached to President Trump’s July 31 executive order that addressed tariff rates for many trading partners showed a “no stacking” condition applies to the European Union, but no such clarification was issued for Japan.

Japan’s Asahi newspaper reported on Thursday, citing an unnamed White House official, that the US will stack the tariffs, adding 15% on all Japanese imports without applying exceptions for items that already have tariff rates above 15%.

In a regular news conference held after the Asahi report, Chief Cabinet Secretary Yoshimasa Hayashi said the US was unlikely to stack 15% tariffs on existing levies. He said Mr. Akazawa confirmed the point with the US side during his visit to Washington on Wednesday.

Given such discrepancies, Mr. Ishiba has been under attack in parliament and domestic media for not crafting a written joint statement stipulating details of the trade deal with the US.

Mr. Ishiba defended the decision, telling parliament on Monday that Japan decided to forgo a written statement for fear that doing so could delay US tariff reductions.

Some lawmakers have warned a lack of written confirmation could backfire given Mr. Trump’s unpredictable decision-making style.

The confusion adds to trouble for Japan’s shaky government led by Mr. Ishiba, who is facing calls to step down after the ruling coalition’s huge loss in last month’s upper house election.

“In negotiating with the US, Minister Akazawa at least ought to have nailed down exactly when US automobile tariffs would be lowered to 15%,” ruling party heavyweight and former trade minister Ken Saito told Reuters on Tuesday.

Yuichiro Tamaki, leader of the opposition Democratic Party for the People, urged Mr. Akazawa to press Mr. Trump’s administration harder to adhere to the bilateral agreement.

“After all, I do feel that a document on the agreement was necessary,” Mr. Tamaki wrote in an X post on Thursday. — Reuters

WASHINGTON/NEW DELHI — US President Donald J. Trump on Wednesday imposed an additional 25% tariff on Indian goods, citing New Delhi’s continued imports of Russian oil in a move that sharply escalated tensions between the two nations after trade talks reached a deadlock.

The new import tax, effective 21 days after Aug. 7, will raise duties on some Indian exports to as high as 50% — among the highest levied on any US trading partner.

Mr. Trump’s executive order imposing the extra tariff did not mention China, which also imports Russian oil, but later said he could announce similar further tariffs on Chinese goods.

“It may happen… I can’t tell you yet,” Mr. Trump told reporters. “We did it with India. We’re doing it probably with a couple of others. One of them could be China.”

Analysts said Mr. Trump’s move marks the most serious downturn in US-India relations since his return to office in January. The tariffs threaten to disrupt India’s access to its largest export market, where shipments totaled nearly $87 billion in 2024, hitting sectors like textiles, footwear, gems and jewelry.

It also marks a shift from the warm ties seen during Mr. Trump and Indian Prime Minister Narendra Modi ‘s February meeting, they said, pointing out Mr. Trump’s recent remarks calling India’s economy “dead,” its trade barriers “obnoxious” and accusing the country of profiting from cheap Russian oil while ignoring the killings of Ukrainians in Russia’s three-and-a-half-year-old invasion of its neighbor.

India’s external affairs ministry called the decision “extremely unfortunate,” noting that many other countries are also importing Russian oil in their national economic interest.

“India will take all necessary steps to protect its national interests,” it said, adding that purchases were driven by market factors and the energy needs of India’s 1.4 billion people.

The development comes as Mr. Modi prepares for his first visit to China in over seven years, suggesting a potential realignment in alliances as relations with Washington fray.

Oil prices edged up about 1% on Wednesday after falling to a five-week low in the prior session after Mr. Trump penalized India for buying Russian oil and in light of a larger-than-expected US crude storage draw last week.

Last week, US Treasury Secretary Scott Bessent warned China that continued Russian oil purchases could trigger new tariffs, as Washington prepares for the expiry of a US-China tariff ceasefire on Aug. 12.

BLOW TO INDIAN EXPORTS
Trade between the United States and India — the world’s biggest and fifth-largest economies respectively — is worth over $190 billion.

Exporters and trade analysts warn that the tariffs — which Mr. Trump casts as a driver to reduce US trade deficits and reinvigorate domestic manufacturing — could severely disrupt Indian exports.

“This is a severe setback. Nearly 55% of our shipments to the US will be affected,” said SC Ralhan, president of the Federation of Indian Export Organizations.

The increased duties place Indian exporters at a 30–35% disadvantage versus trade rivals in Vietnam, Bangladesh and Japan.

“With such obnoxious tariff rates, trade between the two nations would be practically dead,” said Madhavi Arora, economist at Emkay Global.

Indian officials acknowledged pressure to return to negotiations with the Trump administration. A phased cut in Russian oil imports and diversification could be a part of the compromise.

“We still have a window,” said a senior Indian official, requesting anonymity. “The fact that the new tariffs take effect in 21 days signals the White House is open to talks.”

Another official said there were no immediate plans for Mr. Modi or senior leaders to travel to Washington, nor were any retaliatory measures being considered.

Instead, the government is weighing relief for exporters, including interest subsidies and loan guarantees.

A sharp drop in US-bound shipments could drag India’s gross domestic product growth below 6% this year, down from the central bank’s 6.5% forecast, said Sakshi Gupta of HDFC Bank.

India’s rupee weakened in offshore non-deliverable forwards market while stock futures fell marginally after the announcement.

“While markets have already started pricing in the risk of a sharp tariff hike, a near-term knee-jerk reaction is inevitable unless there’s swift clarity or a breakthrough in negotiations,” said Mayuresh Joshi, head of equity research for India at Willian O’ Neil.

Mr. Trump’s move follows five rounds of inconclusive trade talks, which stalled over US demands for wider access to Indian agriculture and dairy markets. India’s refusal to cut Russian oil imports — which hit a record $52 billion last year — ultimately triggered the tariff escalation.

US and Indian officials told Reuters a mix of political misjudgment, missed signals and bitterness scuttled trade deal negotiations between the world’s biggest and fifth-largest economies, whose bilateral trade is worth over $190 billion. — Reuters

SEOUL — South Korea and the United States will conduct major joint military drills starting on Aug. 18, officials said, although they will delay parts of the annual exercises that have been a source of tension with North Korea to later in the year.

The 11-day annual exercises, called Ulchi Freedom Shield, will be on a similar scale to 2024 but adjusted by rescheduling 20 out of 40 field training events to September, South Korea’s Joint Chiefs of Staff spokesperson Lee Sung-jun said.

The allies agreed to reschedule some parts of the drill to next month over factors “including ensuring training conditions during extreme heat and maintaining a balanced combined defense posture year-round,” Mr. Lee said at a briefing.

This year’s drill will test an upgraded response to heightened North Korean nuclear threats as well as cutting-edge technologies used in modern wars, Mr. Lee said, citing conflicts in Ukraine and the Middle East.

The exercise will include a scenario of a North Korean missile launch but will not cover a potential nuclear test by Pyongyang, he said. The decision to spread out the scheduling included reasons such as extreme weather, Mr. Lee said, denying there were any political factors behind the move.

The drills are due to be staged as the new South Korean government of President Lee Jae Myung seeks to improve strained ties with Pyongyang and revive stalled dialogue with its neighbor.

A senior official from South Korea’s Unification Ministry, which manages relations between the Koreas, said on Thursday that the delay in some training exercises was aimed at easing tensions with North Korea, the Yonhap News Agency reported.

Some analysts were skeptical about Pyongyang’s response.

“North Korea won’t be satisfied with the adjustment at all,” said Cheong Seong-chang, vice-president at the Sejong Institute in Seoul, a research center on North Korean affairs.

“What the regime wants is the termination of the drills with the US, not a slight rescheduling,” said Mr. Cheong.

On Monday, South Korea removed loudspeakers blasting anti-North Korea propaganda near its border with the North in a bid to lower friction with Pyongyang.

So far North Korea has rebuffed such overtures by Seoul.

Kim Yo Jong, the powerful sister of North Korean leader Kim Jong Un, recently said that South Korea’s decision to stop the broadcasts was “not the work worthy of appreciation,” state media KCNA reported. — Reuters