Since the US and Japan reached a trade agreement last month, disagreements have arisen on numerous details, causing considerable confusion and posing potential risks to the agreement's implementation.

At midnight Eastern Time on August 7th, the US will begin imposing "reciprocal tariffs" on its trading partners. On the eve of the imposition of these tariffs, the biggest disagreement between the two sides regarding the trade agreement has surfaced: the two sides disagree on the exact tariff rate Japan will be subject to.

According to the Nikkei website, on the morning of August 6th, Japanese Minister of Economic Revitalization Ryomasa Akasawa, who is visiting the US, told reporters that the US official announcement regarding the tariffs starting on August 7th is inconsistent with the previous agreement reached between the two countries, will result in higher tariffs for Japan, and Japan demands that the US correct its actions.

On July 22nd, local time, US President Trump announced via social media that the US and Japan had reached a trade agreement: a 15% tariff on Japan and $550 billion in Japanese investment in the US.

Ryomasa Akasawa stated that they had repeatedly confirmed with the US that the total tariff rate for goods currently subject to tariffs below 15% would be 15% after the August increase. However, the US government's recent announcement indicated that Japanese goods already subject to tariffs would be subject to an additional 15% tariff, which was inconsistent with the agreement and disadvantageous to Japan.

Ryomasa Akasawa emphasized that he would "demand an explanation from the US side and implement the agreed terms."

Separately, a White House official stated on Wednesday that the 15% tariff would be imposed on top of existing tariffs on Japan, unlike the EU. This confirms that Japan and the US have different interpretations of the terms of the trade agreement.

Shortly after the US-Japan trade agreement was reached, the Japanese government explained that the 15% tariff would apply to goods currently subject to lower tariffs, while there would be no change to goods already subject to tariffs of 15% or higher.

In fact, official US documents, including an executive order signed by Trump last week to adjust tariff rates for dozens of countries, only mention a "non-stacking" clause with respect to the EU. The EU-US trade agreement came just days after Japan and the US reached theirs.

It's unclear when US tariffs on Japanese cars will be reduced from the current 27.5% to 15%. Akasawa Ryomasa called on his US counterparts to reduce tariffs on Japanese cars and auto parts as soon as possible.

Akasawa also stated that Japan and the US have reached an agreement to reduce tariffs on cars and auto parts to 15%, but the specific timing has not yet been determined. His immediate priority during this trip will be to urge the US to implement this as soon as possible.

He has previously stated that Japanese cars and auto parts are currently subject to a 27.5% US tariff, and the related industry is suffering huge losses every day.

The Japanese auto industry hopes the Japanese government will continue dialogue with the US to further reduce tariffs. The industry believes that the 15% tariff is still too high compared to the 2.5% tariff in place before Trump took office.

Furthermore, the two sides also have numerous disagreements regarding Japan's investment commitments in the US-Japan trade agreement, focusing primarily on the nature of investment and profit distribution.

US President Trump recently stated that the US can freely use the $550 billion promised by Japan for various investments. In response, Akasawa Ryomasa stated that Japan cannot cooperate if it does not benefit Japanese companies and the Japanese economy.