Itsunori Onodera Criticizes US Tariff Hike
LDP Tax Chair Rebukes Washington’s Tariff Move
A senior figure in Japan’s ruling party criticized recent US tariff increases, framing the action as chaotic and politically fraught. Itsunori Onodera aired his remark on live television, signaling Tokyo’s unease at a unilateral shift in American trade enforcement following a judicial reversal. The timing follows a high court decision that invalidated an earlier tranche of duties, after which the US administration announced higher levies to restore protection for affected sectors.
Political reaction in Tokyo is now visible at the party leadership level rather than confined to technocratic briefings, which hardens the domestic agenda for rapid consultations. Markets and exporters are watching closely: the immediate policy reversal increases uncertainty for cross-border contracts and procurement plans in industries where Japan is heavily integrated into US supply chains. Trade policy is moving from lawyers and tariff lines into the realm of parliamentary scrutiny and public diplomacy.
Diplomatic channels will be tested as Japan seeks clarity and relief for exporters; expect Tokyo to press for bilateral negotiations or carve-outs for key sectors. Automakers, machinery firms and electronics suppliers—tight nodes in US-Japan production networks—face short-term cost and scheduling adjustments. Currency and financial flows may absorb some of the shock, but pass-through to producer prices is likely within one to two quarters.
Domestically, Onodera’s public comment creates leverage for opposition and interest groups demanding a tougher Japanese response or compensation measures. Internationally, allies and trading partners will reinterpret Washington’s willingness to recalibrate tariffs after a court setback, which could influence their own contingency planning. The episode exposes the fragility of tariff-based industrial protection when legal rulings and executive policy collide.
Read Our Expert Analysis
Create an account or login for free to unlock our expert analysis and key takeaways for this development.
By continuing, you agree to receive marketing communications and our weekly newsletter. You can opt-out at any time.
Recommended for you
Trump-era tariff shock reshaped global trade — what comes next
A recent court decision removed one statutory route the White House used to impose targeted emergency tariffs, trimming a subset of the additional levies that followed 2024 policy moves. But sizeable remaining duties, large fiscal receipts and unresolved legal and operational questions mean higher-than-normal import costs and continued trade volatility for businesses and partners.
Indian opposition urges Modi to pause US trade pact after U.S. tariff move
India’s opposition has asked Prime Minister Modi to suspend work on a bilateral U.S. trade understanding after Washington moved on two fronts: a rapid, temporary 10% economy‑wide import surcharge announced under Section 122 of the Trade Act (with a 150‑day statutory sunset unless Congress acts) and, in parallel, a narrower bilateral compact that senior U.S. officials say cuts reciprocal tariffs on covered Indian goods to 18% (from 25%) and removes a prior 25% punitive surcharge. A U.S. high‑court ruling that voided one IEEPA‑based legal route, large contested customs‑refund exposures reported in filings (roughly $130 billion) and the need for CBP/Treasury guidance, MOUs and verification mechanisms have intensified calls in New Delhi for legally binding, sector‑specific safeguards before parliamentary endorsement.
ECB’s Panetta: Tariffs Have Hit the US Hardest
ECB Governing Council member Fabio Panetta says recent U.S. tariffs shifted most of the economic cost onto American shoulders — with foreign exporters absorbing a small share (~10%) and consumers and firms shouldering the bulk — a pattern that raises near‑term inflationary pressure in some places while depressing demand in others, complicating central-bank trade‑offs.
Christine Lagarde: ECB Priorities Amid US‑EU Tariff Uncertainty
ECB President Christine Lagarde warned that opaque U.S. tariff actions—framed historically at a 10% headline and implemented in practice with a 15% ceiling plus carve‑outs—undermine predictability and could shift costs onto consumers. She urged defending central‑bank independence, strengthening euro liquidity and payment rails, and will give EU leaders a technical checklist to close coordination gaps and reduce fragmentation, while EU institutions press Washington for rapid legal and procedural clarity.
Australia Signals Retaliation Path After 15% US Import Tariff
Australia is preparing a measured response after the United States imposed a 15% tariff on certain imports; Canberra will weigh WTO, reciprocal and commercial options amid legal and implementation uncertainty after recent U.S. court rulings and the administration's use of multiple statutory authorities.
Hassett Publicly Rebukes New York Fed Study on Tariff Burden
A senior White House economic official harshly criticized a New York Fed study that attributed roughly 90% of recent tariff costs to US buyers and firms, arguing the analysis was flawed. The exchange underscores mounting political pressure on Fed researchers and arrives amid a broader push by the administration to reshape central bank leadership.
European Commission demands U.S. honor trade deal after tariff reversal
The European Commission has pressed Washington for immediate clarity after a U.S. judicial ruling removed one legal route for broad emergency levies while the administration has relied on alternative tools and announced temporary tariffs that moved from 10% to 15%. Brussels says last year’s EU‑U.S. understanding — including a 15% ceiling for most EU goods and duty‑free carve‑outs for select aerospace items — must be respected to preserve market predictability and investor confidence.
US tariffs squeeze game-industry finances, survey shows
A GDC Festival of Gaming survey of 200 industry executives finds 38% reporting that 2025 US tariffs altered their expenses, revenue or financial choices. The trade measures have already influenced pricing decisions, manufacturing considerations, and short-term market plans among major console makers and publishers.