Japan’s PM Ishiba pushes for 0% tariffs in US trade talks

Japanese Prime Minister Shigeru Ishiba has reiterated his call to eliminate all tariffs in ongoing trade negotiations with the United States. 

In a televised interview on Sunday, Ishiba emphasized the mutual benefits of a zero-tariff agreement, highlighting the positive progress in discussions and his constructive relationship with US President Donald Trump.

Ishiba highlighted a recent US-UK trade deal that cut most tariffs on British car exports but left a 10% basic tariff in place and said Japan should seek to eliminate tariffs. He made that argument by noting that high import duties, particularly the 25% tariff on Japanese auto exports to the US now in place, boost costs for American consumers and hurt the US economy. Japan also faces a 24% retaliatory tariff on goods shipped to the US.

The Japanese auto industry, an important part of the Japanese economy, has been hit hard by these tariffs. In recent discussions about tariffs, Japan’s chief trade negotiator, Ryosei Akazawa, cited the example of one auto company that is suffering $1 million in losses for each hour due to the 25% U.S. tariff on an automobile export, underscoring the need for swift progress in negotiations on tariffs

However, while Ishiba seems more inclined to a zero tariff plan, President Donald Trump has suggested maintaining the floor 10% tariff.

Trump insists on maintaining a base 10% tariff on Japan’s products

On the talk show, PM Shigeru Ishiba also described their talks with the US government as  “gradually coming together” and even termed his relationship with President Trump as “surprisingly good.”  

Additionally, he maintained that Tokyo should target tariffs of 0% in their trade deal with Washington, arguing that high tariffs would hurt both Japanese manufacturers and American consumers. For instance, he cited that the country’s automobile exports to the US would lessen and drive car prices up if Trump’s Administration imposed high import duties, which would be detrimental to both parties.

He further argued that his country is still investing and creating jobs in the US; hence, if their automobile industry was weakened, they could no longer contribute to US investments. According to the Japan Automobile Manufacturers Association, the country exported 1.37 million vehicles, roughly worth $41 billion to the United States last year, 

Ishiba also spoke on the US-UK deal, acknowledging it as “one possible model” but a suboptimal one.

The US agreed on Thursday to reduce tariffs to 10% on 100,000 units of British luxury exports annually. While Ishiba acknowledged it as a favorable deal for the U.K., he believes Japan can and should pursue better terms, preferably a 0% tariff deal.

Nonetheless, Trump maintained that a 10% tariff on imports would remain in effect even after finalizing the trade negotiations. He argued that exemptions could be considered if trade partners offer substantial concessions.

Japan will be subject to a 25% tariff on its automobile exports to the US if it cannot agree with the US before July 8. The US will also impose a 24% tax on other Japanese products.

Ishiba calls for caution in the reduction of the nation’s consumption tax

Ishiba strongly believes that a zero-tariff deal would also boost the American economy. He commented, “For the benefit of the American economy, too, shouldn’t the tariffs be reduced?”

He also warned against reducing the Japanese consumption tax quickly. He encouraged caution and prudency, claiming that lowering the consumption tax too rashly may harm the country’s economy.

Moreover, he’s called for alternative measures to assist people in need instead of indiscriminate tax reduction.

Your crypto news deserves attention - KEY Difference Wire puts you on 250 top sites