The United States is considering revisiting the 2020 trade agreement with Japan (USJTA) as ongoing negotiations over reciprocal tariff rates continue. According to a report by Jiji, the two nations are reassessing aspects of the deal to address lingering disputes.

The USJTA originally stipulated that Washington would reduce or eliminate tariffs on 241 product lines, primarily industrial goods imported from Japan. In return, Japan agreed to lower tariffs on 600 agricultural goods and expand tariff-rate quotas on certain products. Additionally, the two countries signed a Digital Trade Agreement in the same year.

Despite these agreements, tensions remain. The US recently rejected Japan's request for a full exemption from a 10% counter-tariff and a country-specific duty. Nevertheless, negotiations continue, with US President Donald Trump indicating that Washington and Tokyo are close to finalizing a new trade deal.

Japanese Prime Minister Shigeru Ishiba reaffirmed his administration’s commitment to eliminating all tariffs between the two nations, emphasizing the importance of free trade in fostering bilateral economic growth.

The potential revision of the USJTA marks a significant step in addressing trade imbalances and strengthening economic ties between the two key allies.