This report discusses issues regarding U.S.-Japan economic relations. Japan is a significant partner of the United States in a number of foreign policy areas, particularly in U.S. security priorities, which range from hedging against Chinese military modernization to countering threats from North Korea.

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There have been varying estimates of the number of U.S. automobile dealerships that would be affected by the Administration's recently announced plan to impose a 100-percent tariff on imported Japanese luxury automobiles. This report examines the assumptions which result in some of the differences. also provides a State-by-State estimate of numbers of dealers potentially affected if the higher tariffs are imposed.

This report addresses the September 1, 2008, resignation of Japanese Prime Minister Yasuo Fukuda and the resulting aftermath. It also addresses the September 22 Liberal Democratic Party (LDP) election of Fukuda's successor and the widely expected winner of said election, ex-Foreign Minister Taro Aso. Japanese policymaking is likely to enter a period of disarray, which could negatively affect several items of interest to the United States. This report analyzes the factors behind and implications of Japan's current political turmoil.

This report provides a snapshot of U.S.-Japan relations, current economic and security challenges facing Japan, and policies being adopted or considered to deal with them.

Japan-U.S. relations are more uncertain and subject to greater strain today than at any time since World War II. Longstanding military allies and increasingly interdependent economic partners, Japan and the United States have worked closely together to build a strong, multifaceted relationship based on democratic values and interests in world stability and development. But Japan today is our foremost economic and technological competitor. The Cold War thaw, discord in U.S.-Japanese relations over the Iraq-Kuwait crisis of 1990-1991, a protracted U.S. recession, and exigencies of U.S. election-year politics raised new questions about the appropriate U.S. policy toward this Asian ally.