Talks between Japan and the U.S. are ongoing, with Japan continuing to press for the removal of trade tariffs that have significantly impacted its economy. Despite the ongoing discussions, Japan remains resolute in its demand for fair treatment and equitable trade practices.
Ishiba Speaks with Trump Ahead of Trade Discussions
Japanese Prime Minister Shigeru Ishiba held a phone conversation with U.S. President Donald Trump on Friday morning (Thursday evening in Washington). The two leaders talked for 45 minutes. During the call, Ishiba raised concerns once again about the tariffs the U.S. has imposed on Japanese goods.
Speaking to the media later in Tokyo, Ishiba said, “I conveyed to him Japan’s position on US tariffs.” He emphasized that Japan’s request remained the same. “There was no change to our calls for the removal of tariffs,” he said.
Japan Faces Harsh Trade Penalties Despite Alliance
Although Japan is one of America’s closest allies and its largest foreign investor, it still faces the standard 10% tariffs the U.S. has placed on many countries. In addition, Japanese cars, steel, and aluminum face even higher duties.
In April, Trump announced new “reciprocal” tariffs of 24% specifically on Japan. However, these new penalties, along with similar ones targeting other nations, were put on hold until early July.
Focus on Jobs and Investment Alongside Tariffs
Ishiba made it clear that Japan’s concerns go beyond just trade duties. “As I’ve said before, it’s not just about tariffs but about investment,” he stated. He also highlighted Japan’s efforts to support American jobs. “There will also be no change to our position that Japan and the US will cooperate on generating employment in the US,” he added.
Japan’s Trade Envoy Heads to Washington for More Talks
As part of the ongoing negotiations, Japan’s economic revitalisation minister, Ryosei Akazawa, left Tokyo for Washington. This marks the third round of direct trade talks between the two countries. Akazawa spoke to journalists at Haneda Airport before his departure. “The series of tariff measures taken by the US are regrettable. We’ll strongly demand a review of these measures,” he said.
Still, he acknowledged that both sides needed to find common ground. “But we have to reach an agreement, so it has to be win-win for both sides. We’ll listen carefully to the various proposals and ideas of the US side, and look for common ground between the two sides,” he explained.
Top U.S. Official Will Skip This Round of Talks
Japanese media, including NHK, reported that U.S. Treasury Secretary Scott Bessent would not attend the upcoming talks. According to the reports, Akazawa is expected to return to Washington for further discussions on May 30.
Auto Tariffs Deal a Major Blow to Japan’s Economy
Japan has been hit especially hard by the 25% tariffs on vehicles introduced by the Trump administration. Cars are a major part of Japan’s economy, supporting about 8% of the country’s total employment. To make matters worse, the U.S. recently imposed another 25% tax on imported auto parts, including critical components like engines and transmissions. Back in February, Ishiba had pledged during a White House meeting that Japan would increase its annual investments in the U.S. to $1 trillion.
Analyst Says Japan Faces Challenges Despite Investments
Trade expert Stefan Angrick from Moody’s Analytics weighed in on the situation. He pointed out that Japan has not seen much progress in its negotiations with the U.S., even though Washington has softened its stance in talks with China and the UK.
“Although the recent US-China and US-UK trade deals indicate that Washington is aiming to de-escalate trade tensions, Japan-US negotiations have made little headway,” he noted.
He also questioned the effectiveness of Japan’s promises to boost investment. “Japan’s position as the world’s largest foreign investor in the US hasn’t shielded it from tariff threats, so promising more investment is an unconvincing bargaining chip,” he added.
