Source: Wall Street Journal.
According to comprehensive media reports, Shintaro Ishihara stated that there is no need to rush to reach an agreement with the USA and plans to delay the agreement until July. Ishihara reiterated that he will demand the USA to eliminate all tariffs, claiming that the USA-UK agreement is just a "model" of trade agreements, but we should aim for 0% tariffs.
Amid slow progress after two rounds of trade negotiations between the USA and Japan, Japanese Prime Minister Shigeru Ishiba sent a strong signal once again.
According to the latest reports from CCTV News, regarding the USA's decision to reduce tariffs on certain Autos from the United Kingdom to 10%, Japanese Prime Minister Shigeru Ishiba stated on May 11 that while this is a model, Japan seeks to cancel the additional tariffs on Autos, not just to reduce them to this percentage. Additionally, various media reports indicate that Ishiba reiterated on Sunday his commitment to eliminating all tariffs in negotiations.
The Global Times also reported that Prime Minister Shigeru Ishiba originally planned to reach an agreement with the USA on tariff issues in June, but now aims for an agreement by July. Reports indicate that several Japanese government officials revealed that after the second round of Japan-USA tariff negotiations, Ishiba conveyed to those around him the idea that there was no need to hurry to reach an agreement with the USA. Ishiba is currently planning to meet with Trump in the USA, targeting around July 8 — just as the tariff grace period set by the USA is about to expire.
Not satisfied with the UK-USA model, Ishiba vows to pursue "zero tariffs" and a complete elimination of tariffs on Autos.
According to media reports, Ishiba stated on Sunday in a morning program on Fujifilm Holdings Corporation Unsponsored ADR that in trade negotiations with the USA, "discussions have gradually become more aligned," and referred to the relationship between Tokyo and President Trump as "surprisingly good."
Ishiba expressed a different view on the UK-USA agreement announced on Thursday, calling it merely a "model of a trade agreement," "but we should aim for 0% tariffs." According to previous reports from Xinhua News Agency, the United Kingdom and the USA have reached an agreement on the terms of a tariff trade agreement. However, the so-called 10% "reciprocal tariff" imposed earlier by the USA has not been canceled. The UK-USA trade agreement reduces the additional 25% tariff on UK Autos imported into the USA to a maximum of 10% and sets a limit of 0.1 million Autos per year.
Analysis suggests that this may become a template for tariff negotiations among the EU, Japan, South Korea, and other countries. However, Shimo Abe disagrees, further explaining, "If we drain the Japanese auto industry, we won't be able to invest in the USA."
He emphasized that high auto import taxes will make cars more expensive for American consumers, rhetorically asking, "Shouldn't these tariffs be lowered for the benefit of the American economy?" He stated that Japan will continue to demand the complete abolition of auto tariffs from the USA.
Reject the trade model of "exchanging agriculture for autos."
When asked if expanding rice imports from the USA could be a trade-off for tariff concessions, Shimo Abe stated that increasing Japan's rice imports from the USA "could be an option," but he quickly emphasized, "We will not sacrifice agriculture for autos."
Despite the firm stance, Japanese auto giant Toyota has already felt the pain caused by tariffs, with its operating profit expected to decline by about one-fifth by the fiscal year ending in March. Just in April and May, Toyota anticipates a loss of 1.3 billion dollars due to Trump's tariff policy.
Japan is facing challenges as it continues negotiations with the Trump administration. Although the Trump administration has suspended the comprehensive 24% tariffs on Japanese imports until early July, higher auto tariffs are already in effect and damaging Japan's pillar industries. Autos and auto parts are Japan's largest export items to the USA.
According to earlier media reports, Japan’s chief negotiator for the tariff talks, Ryosei Akazawa, recently stated that the new US tariffs are causing a loss of 1 million dollars per hour for a Japanese auto manufacturer. However, negotiations are progressing slowly, partly because the US side has made it clear that Japan’s main demand—exemption from auto tariffs—is not on the negotiation table.
Editor/jayden
