Japan's Purchase of U.S. Semiconductors: Is There Hope for Reduced Trade Tariffs?

TradingKey - According to the Asahi Shimbun, Japan has proposed a procurement plan related to the semiconductor industry during its tariff negotiations with the United States.

Japan plans to subsidize domestic companies to import semiconductor products from the U.S. worth up to 1 trillion yen (approximately $6.94 billion), with a focus on major targets such as AI chip giant NVIDIA.

Following this news, NVIDIA's stock surged 3.2% on Tuesday, closing at 135.5, reaching nearly a two−week high.

This semiconductor procurement plan is closely tied to Japan's strategy of mitigating trade friction with the United States. Currently, Japan has a trade deficit of approximately 10 trillion yen with the U.S., and It hopes to reduce this gap by increasing imports of high-end chips.

Meanwhile, since April, the U.S. has imposed tariffs of up to 25% on Japanese automobiles while maintaining a corresponding tariff rate of 24%, which has severely impacted Japan's key industries. Officials from Japan’s Ministry of Economy, Trade and Industry have indicated that this procurement plan could become a "key bargaining chip" in U.S.-Japan trade negotiations, with both sides potentially engaging in further discussions regarding tariff reductions in the future.

Japan has also urged a reconsideration of tariffs on manufacturing equipment, materials, and derivatives, stating that it will work with the United States to strengthen efforts in the semiconductor supply chain.