The United States has firmly rejected Japan’s request for a full exemption from a 10% reciprocal tariff and a 14% country-specific duty, according to reports from Kyodo citing sources close to the matter. The request was made during recent high-level trade discussions held in Washington.

During last week’s negotiation round, U.S. Treasury Secretary Scott Bessent and other American officials informed Japan’s lead negotiator, Ryosei Akazawa, that President Donald Trump’s administration has no intention of granting a complete exemption at this time. Instead, the discussions will be limited to the 14% country-specific tariff, which is currently suspended but set to expire in early July.

Officials indicated that only two options are on the table: either extending the 90-day suspension or reducing the 14% tariff, depending on the outcome of ongoing talks. No consideration will be given to removing the 10% reciprocal tariff, reaffirming the U.S. position on protecting domestic trade interests while allowing limited negotiation room on bilateral duties.

This development marks a setback for Tokyo’s efforts to ease the burden of U.S. tariffs and maintain smoother trade flows between the two allies. As the early July deadline approaches, further negotiations are expected to intensify, with the potential outcome significantly impacting Japan’s export sector.