U.S. Allies Are Still Waiting for Tariff Relief Even After Speedy China Truce

Japan's Top Trade Negotiator Said the Country Was Still Seeking the Removal of All Tariffs Trump Has Recently Imposed

- Jason Douglas & Timothy W. Martin

The U.S. hammered out a trade truce with its foremost geopolitical rival in record time. Reaching agreement with longtime allies is proving more of a slog.

The U.S. drew up a list of 18 key trading partners to focus on in negotiations following President Trump's April 2 tariff blitz, when he slapped "reciprocal" tariffs on almost all U.S. imports.

The U.K. did secure a lower auto tariff in its rapid-fire agreement with U.S. negotiators—but only on the first 100,000 vehicles imported each year, far fewer than the carmaking powerhouses send to the U.S. each year.

In earnings reports this month, Toyota, Honda and Nissan blamed tariffs for souring profit forecasts, while data Friday showed Japan's economy shrank in the first quarter, underlining its vulnerability to an export decline.

Yet aside from one quick agreement with the U.K. and now the tariff rollback with China, none have so far yielded the kind of breakthrough that would bring relief for painful import levies.

For some of the biggest targets on that list, such as Japan, South Korea and the European Union, one sticking point is cars. The U.S. has so far been reluctant to drop a crippling 25% tariff on imported autos, which particularly hits these allies.

Japan's top trade negotiator, Ryosei Akazawa, said Japan was still seeking the removal of all tariffs Trump has recently imposed, including those on autos and steel as well as the baseline 10% "reciprocal" tariff. He called these levies "deeply regrettable."