Japan

Intelligence for Better Decision Making

Japanese Company Affiliates Challenge Trump-Era Tariffs in US Court

Dec. 4, 2025 | Governance & Law

Affiliates of Japanese firms are contesting the Trump administration’s additional tariffs, arguing that the measures exceeded presidential authority.

**US affiliates of nine Japanese companies—including Toyota Tsusho Corp, Sumitomo Chemical Co., Ricoh Co., Yokohama Rubber Co., Ushio Inc., NGK Insulators Ltd., Kawasaki Motors Ltd., Yamazaki Mazak Corp and Proterial Ltd.—have filed lawsuits in the US Court of International Trade seeking full refunds for tariffs they paid in 2025.**
They argue that the levies, imposed under the International Emergency Economic Powers Act without congressional approval, exceeded the act’s scope by authorizing “reciprocal” or sector-wide tariffs on imports from China, Canada, Mexico and other nations.

**These filings follow Supreme Court oral arguments in November, during which justices questioned whether the president could invoke a 1970s-era emergency law to bypass Congress when imposing high tariffs on national-security grounds.**
Lower courts previously ruled that the Trump administration overstepped its authority by using IEEPA to penalize countries for insufficient cooperation on fentanyl trafficking, rather than to address a direct threat to US national security.

**The Japanese affiliates note that even if the Supreme Court voids the tariffs, importers would not automatically receive refunds.**
They ask the Court of International Trade to declare the tariffs illegal, block any new reciprocal levies and ensure full repayment if the high court strikes down the measures.

**The timing of the Supreme Court’s decision remains uncertain, and legal experts warn that an invalidation could trigger a protracted, complex refund process spanning several years.**
Meanwhile, other entities—such as US retailer Costco Wholesale Corp—have filed their own suits to recover duties paid under the same Trump-era tariff schedules.

LDP Moves to Reduce House Seats and Redraw Electoral Districts

Dec. 4, 2025 | Politics

Japan’s Liberal Democratic Party has proposed reducing the total number of seats in the House of Representatives from 465 to 420 or fewer and redrawing electoral districts based on updated population data.

**The draft legislation tasks an electoral system council—including representatives from all parties in the House—with deciding the precise methods for seat reduction, and it requires lawmakers to enact the necessary legal measures within one year of the law’s passage.**
If the parties fail to reach agreement within twelve months, an automatic reduction clause would eliminate 25 single-member constituencies and 20 proportional representation seats. In that event, the national Council for the Delimitation of Constituencies would use 2025 census figures to redraw district boundaries within one year, potentially paving the way for elections under the new structure by December 2027.

**During an LDP meeting on December 2, 2025, members raised objections to the automatic reduction clause, leading party leaders to delay final approval until the next day.**
Former Foreign Minister Takeo Iwaya criticized the process as rough and urged removal of the clause due to insufficient internal dialogue. Secretary-General Shun’ichi Suzuki defended the one-year review period and the 10 percent reduction target, noting public backing for seat cuts and previous comments by Constitutional Democratic Party leader Yoshihiko Noda. Ahead of that meeting, LDP negotiators and representatives of the Japan Innovation Party agreed to accelerate internal approvals and submit the bill during the current Diet session, though some LDP members still question whether the party can muster the necessary support.

**Two LDP calculations project that single-member districts would drop from 289 to 264 and proportional representation seats from 176 to 156.**
Both estimates apply the Adams method to align seat allocations with prefectural population ratios, targeting cuts in 20 prefectures. Under each plan, Tokyo would lose three single-member seats, Kanagawa, Chiba, and Osaka would each lose two, and smaller prefectures such as Akita, Toyama, and Kagawa would see districts reduced from three to two. All 11 proportional representation blocks would lose between one and three seats, with the exact numbers depending on whether the adjustments use the 2020 census or the 2025 Basic Resident Register data.

**Analysts warn that these reforms would increase disparities in vote weight across prefectures, raising the ratio of the most to the least populous districts from 1.7 to about 1.86.**
Post-reform, Chiba would have the highest population per representative at roughly 510,183, while Tottori would have the lowest at about 274,383. Critics argue that widening these gaps could further weaken rural influence and undermine voter equality. Former Prime Minister Shigeru Ishiba has opposed seat reductions and cautioned that returning to multi-member districts might stoke political conflict, reflecting the broader debate over fair representation and electoral balance.

Monitored Intelligence for Japan - Dec. 5, 2025

News
Media
368

Government
Releases
36

City/State
Releases
93

Embassy
Releases
1

Foreign
Service
Advisories
0

Academic/
Think
Tank
16

Podcasts
0

Videos
0

Social
Media
0

Business
Releases
0

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

Risk Categories Reported on Today

Risk Category

Items Reported On

Regulation

IP Protection

Crime

Accidents

Epidemics and Pandemics

Extreme Weather Events

Political Scandal or Corruption

Privacy

Corporate Corruption or Fraud

Natural Disasters

Geopolitical Conflict and Disputes

Critical Infrastructure Failure

Shifting Geopolitical Alliances

Cyber Attacks and Data Loss

Supply Chain Issues

North Korea

Pollution

Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.

We categorize key intelligence into one of 30 different operations intelligence categories.

Different roles and functions within the organization can monitor different key issue areas. HR may monitor employment, wages, regulations, labor and management relations, etc., while P&L leaders may monitor overall developing trends.

Operations Categories Reported on Today

Operations Category

Items Reported On

Economic Growth

Financial System Problems

Asset Price Change

Employment

Real Estate

Tech Development/Adoption

Wages and Compensation

Bizdev-Partnering

Operating Results

Politics and Elections

Mergers & Acquisitions

Energy Prices

Taxes

Legal Exposure

Investor Sentiment

Initiative

Demographics

China unleashes diplomatic campaign to isolate Japan amid Taiwan row

Japan Times | English | News | Dec. 5, 2025 | Geopolitical Conflict and Disputes

China has intensified its diplomatic efforts to isolate Japan amid an ongoing dispute over Japanese Prime Minister Sanae Takaichi's comments on Taiwan. Chinese Foreign Minister Wang Yi met with Russian officials Sergey Lavrov and Sergei Shoigu in Moscow, where both countries expressed a shared stance against Japan.

During the talks, China and Russia agreed to enhance their strategic coordination, particularly on issues related to Japan. They jointly criticized Japan for what they described as increasing militarism and reaffirmed their commitment to upholding the outcomes of World War II. Both countries opposed any attempts to whitewash Japan's colonial aggression or revive fascism and militarism.

政府与党、税収偏在是正策を検討地方法人課税と固定資産税

Government and Party Consider Measures to Correct Tax Revenue Disparities: Local Corporate Taxation and Property Tax

Tokyo Shimbun | Local Language | News | Dec. 5, 2025 | UndeterminedTaxes

The government and ruling parties in Japan have started coordinating new measures to address the concentration of local tax revenues in Tokyo, particularly concerning local corporate taxation and the fixed asset tax on land. They have identified a widening gap in administrative services between Tokyo and other local areas as a key issue. For local corporate taxation, the plan is to expand the existing redistribution scheme that allocates some tax revenue among municipalities. For the fixed asset tax on land, which currently lacks a redistribution mechanism, they are expected to introduce a new system incorporating such redistribution.

These proposals will be included in the ruling parties’ tax reform outline for fiscal 2026, set to be finalized within the year. However, because the development of concrete system designs will require additional time, discussions will carry on into 2026, with the likelihood that the measures will be enacted in the fiscal 2027 tax reform.

Data from the Ministry of Internal Affairs and Communications shows that in fiscal 2023, Tokyo accounted for 17.6% (8 trillion yen) of total local tax revenue of 45.7 trillion yen. Specifically, Tokyo’s share of local corporate taxation remains high at 22.5% after redistribution, and it holds 25.1% of the fixed asset tax on land revenue. Tokyo has continued to enhance resident services, such as subsidizing children’s medical expenses, contributing to disparities with other prefectures.

South Korea's Lee discusses role in mediating Japan-China tensions

NHK | English | News | Dec. 5, 2025 | Shifting Geopolitical Alliances

South Korean President Lee Jae-myung emphasized his commitment to improving ties with Japan and expressed willingness to mediate tensions between Japan and China. He spoke at a news conference marking the one-year anniversary of a martial law declaration by his predecessor, highlighting the need to address specific bilateral issues such as the cancellation of Japan's support for South Korean air force refueling at Naha Air Base and the halted dispatch of a South Korean military band to a Japanese Defense Ministry event.

Lee noted parallels between U.S.-China and Japan-South Korea relations, acknowledging areas of confrontation as well as cooperation. He stressed the importance of gradually resolving unresolved issues to ensure bilateral relations continue to progress in a positive and future-focused direction.

Regarding Chinese responses to remarks by Japanese Prime Minister Takaichi Sanae on Taiwan, Lee cautioned against taking sides, warning that it could escalate tensions. He advocated for a mediating role to help coordinate and minimize conflicts wherever possible.

Try the Daily Briefing

Try the Daily Briefing for your country of choice for two weeks--free of charge and with no obligation.

Have a service or subscription question? We'd be happy to hear from you.

How can we help?

Full Name:

Email Address:

Type of Inquiry:

Country of Interest:

Contact us for a free trial of the Daily Briefing for your country of choice.

We currently cover:

South Korea
Japan
China
Taiwan
Vietnam
India

info@eruditerisk.com

The Daily Briefing is delivered Monday through Thursday via email.

Each day's reports include a combination of:

Takes
Takes are our deep dives into a topic of enduring interest or concern. Takes include copious references to all the media resources we gathered to build them.

Developments
Developments are key issues and incidents being heavily reported on in country. These are the centers of local thought gravity around which everything else revolves.

Risk Media
Summaries and analysis of the most important risk issues reported on in media, arranged by risk category. Learn about risk trends and issues while they are developing--before they blow up.

Ops Media
Summaries and analysis of the most important operational issues reported on in media, arranged by operations category. See what's changing in your market, and what's not.

Government Releases
Government press and data releases on key economic data, regulation, law, intiatives, incidents. Straight from the government's press to your eyes in less than a day.

Embassy and Business Association Releases
Statements and news releases from foreign embassies and business/industry associations, including chambers of commerce.

The Daily Briefing is comprehensive!

The Daily Briefing can run 50-100 pages each day!

Luckily, Erudite Risk tailors every report specifically to you.

Content Filtering
We try hard to ensure that every piece of information included in each day's reports will be of interest to our readers.

To fulfill our goal of comprehensively monitoring the intelligence landscape and also keeping reports readable, we build big reports--then deliver only the information that applies to you.

Each Daily Briefing is a bespoke report matched to your concerns. Tell us what you want in it, or we can match it to your professional needs. It's that easy.