Japan seeks US tariff exemption amid talks on Alaska LNG

Japan formally requested an exemption from US tariffs, including on steel, aluminum and automobiles, during talks in Washington, Japan's Minister of Economy, Trade and Industry Yoji Muto said late March 10, with the talks also including Alaska LNG.

Speaking to reporters in Washington, Muto said he requested Japan's exemptions during separate meetings with US Trade Representative Jamieson Greer, Secretary of Commerce Howard Lutnick and National Economic Council Director Kevin Hassett.

"I expressed to the US government that our country should not be subject to the tariff measures that have been announced so far, and I explained our country's perspective on the impact of the US tariff measures on our industry and on the business environment and investment, [and] employment expansion in both Japan and the US," Muto said, adding that he felt that Japan's contributions to the US "have been very well received so far."

Following the meetings, Japan and the US agreed to launch working-level discussions at an early date on the subject, Muto said, adding that Tokyo has not received any word from Washington regarding warranting any tariff exemptions.

The development comes as the Trump administration has threatened to impose a 25% tariff on all steel and aluminum imports, along with an additional tariff on automobiles. Tariffs on all US steel and aluminum imports were set to take effect on March 12.

Alaska LNG

During the meetings, Muto said Japan and the US also held discussions on Alaska LNG.

"Regarding Alaska, discussions were held on Japan-US cooperation in the energy sector, including Alaska LNG," Muto said, declining to elaborate.

However, Muto said Japan and the US also agreed that an increase in US LNG exports would contribute to Japan's energy security.

"There was a consensus between Japan and the US on the point [that an] increase in US LNG exports will contribute [to] Japan's energy security," Muto said as he declined to elaborate further.

In his speech to Congress on March 4, US President Donald Trump said, "My administration is also working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partners with investments of trillions of dollars each."

"It will be truly spectacular. It is all set to go," Trump added.

Trump said on Feb. 7, after meeting with Japanese Prime Minister Shigeru Ishiba at the White House, that the US and Japan are in talks about an Alaskan pipeline and expanding Japan's imports of US LNG.

The Alaska LNG project would link Alaska North Slope supplies through a pipeline over 800 miles long, estimated to cost over $10 billion, to a 20 million mt/year LNG export terminal in Nikiski on the Kenai Peninsula in southern Alaska.

Japan imported 6.34 million mt of US LNG in 2024, accounting for 9.6% of the country's total imports of 65.89 million mt, according to Ministry of Finance data.