In a recent 45-minute phone call, Japanese Prime Minister Shigeru Ishiba pressed U.S. President Donald Trump to reconsider the tariffs imposed on Japanese goods, emphasizing the need for their removal. This discussion precedes a new round of trade negotiations aimed at easing the levies.

Japan, a key U.S. ally and its largest foreign investor, currently faces a 10% baseline tariff on most goods, along with steeper duties on automobiles, steel, and aluminum. In early April, President Trump announced a 24% “reciprocal” tariff on Japanese imports, though its implementation has been paused until early July.

Prime Minister Ishiba reiterated Japan’s position during the call, stating, “I conveyed to him Japan’s position on U.S. tariffs,” and affirmed, “There will also be no change to our position that Japan and the U.S. will cooperate on generating employment in the U.S.”

Following the call, Japan’s economic revitalization minister, Ryosei Akazawa, departed for Washington to engage in the third round of trade talks. Akazawa expressed the need for a mutually beneficial agreement, noting, “The series of tariff measures taken by the U.S. are regrettable. We’ll strongly demand a review of these measures.”

The automotive sector, a significant component of Japan’s economy, is particularly affected by the 25% auto tariffs. Approximately 8% of all Japanese jobs are tied to this industry. In addition, the Trump administration recently imposed a 25% import tax on auto parts, including engines and transmissions.

Despite Japan’s substantial investments in the U.S., including a commitment to increase yearly investment to $1 trillion, the tariffs remain a point of contention. Analysts, such as Stefan Angrick from Moody’s Analytics, observe that Japan’s position as the world’s largest foreign investor in the U.S. hasn’t shielded it from tariff threats.(Reddit)

As trade talks continue, both nations aim to find common ground that supports economic growth and maintains strong bilateral relations.

Source: AFP