U.S. tariff reductions in Japan met with predicted response and relief due to similarity with Trump's policies
In a move aimed at boosting trade relations, the United States and Japan have agreed to lower tariffs on Japanese goods, including kitchen knives, from 25% to 15%. This reduction, effective from August 1, 2025, is part of a broader trade agreement between the two nations [1][4].
The change is likely to benefit companies like Sumikama Cutlery, a renowned knife manufacturer based in Seki, a city with a 700-year-old knifemaking tradition. Approximately 40% of Seki's kitchen knives are exported to the US, suggesting a significant portion of Sumikama Cutlery's products are affected by these tariffs [1].
Katsumi Sumikama, the head of Sumikama Cutlery, views the tariff reduction as a positive but not surprising move, attributing it to a strategic decision by the US administration [1]. The reduction could help increase demand for Japanese knives in the US, potentially benefiting Sumikama Cutlery. However, it also highlights the ongoing challenges and uncertainties in international trade agreements [2][4].
Sumikama Cutlery employs about 30 workers and prides itself on precision, using machines to guarantee accuracy to one-thousandth of a millimetre in knife production, with artisans finishing the job by hand. The company exports more knives to Europe and other Asian countries [3].
Despite the tariff reduction, Sumikama expresses mixed feelings about the trade deal. Japanese knives have become a luxury item in kitchens worldwide, including the United States, due in part to a pandemic-era home cooking boom. However, if President Trump aims to make America strong by raising tariffs, Sumikama believes that problems cannot be solved by such simple means and that American people will have to bear the burden of higher costs [5].
Japanese knives are known for their precision, sleek finish, long lifespan, ability to make food taste better, unique 'wabi-sabi' aesthetics, and unmatched sharpness. Clients in the US have survived tumultuous events such as the 2008 financial crisis and are not worried about tariffs [6]. Exports to North America, including Canada, account for only 5% of the value of Sumikama Cutlery's sales [3].
The Seki industry has weathered fluctuations in exchange rates, with one dollar worth 80 yen or more than 300 yen at times. Despite these challenges, the city's knifemaking tradition predates the 14th century, making it one of the oldest in Japan [2]. The city became a major producer of swords in the 14th century [2].
This news comes as Japan is one of five nations to have signed a trade agreement with the United States, along with Britain, Vietnam, Indonesia, and the Philippines [4]. The agreement is part of the US's broader strategy to strengthen economic ties with key allies.
[1] The United States and Japan Reach a Trade Deal to Lower Tariffs on Japanese Goods [2] The Long and Noble History of Seki Blades [3] Interview with Katsumi Sumikama, CEO of Sumikama Cutlery [4] US-Japan Trade Agreement: What It Means for Businesses [5] Interview with Katsumi Sumikama on the Impact of US Tariffs on Japanese Knife Exports [6] Japanese Knives: A Luxury Item in the Age of Home Cooking
- Despite the decreased tariffs on Japanese goods in the United States, Sumikama Cutlery, a prominent knife manufacturer in Canada, primarily exports its products to Europe and other Asian countries rather than North America.
- While the reduction in tariffs on Japanese goods in the US market could potentially boost demand for Japanese knives, Katsumi Sumikama, the head of Sumikama Cutlery, believes that raising tariffs is not an effective solution to the ongoing challenges in international trade.
- The Seki industry, known for its century-old knifemaking tradition and production of high-quality knives, has demonstrated resilience in weathering fluctuations in exchange rates and other challenges, making it one of Japan's oldest industrial traditions.
