Japan-U.S. Summit: How Will Tokyo Rebuild Tariff Negotiations?
Prime Minister Shigeru Ishiba has held direct talks with U.S. President Donald Trump to persuade the president to review his high tariff policy, but the prime minister was unable to change his mind. It is necessary to reaffirm that the bottom line is protecting national interests and to rebuild the negotiations.
Ishiba met with Trump on the sidelines of the Group of Seven summit in Canada and discussed the review of the high tariff measures of the United States.
After the meeting, the prime minister said, 'Points that the two sides cannot find common ground on still remain,' explaining that no agreement had been reached. The prime minister said the two leaders agreed to continue negotiations among their ministers.
A key point that emerged during the bilateral summit was Trump's strong commitment to automobile tariffs.
Trump has made the revival of the manufacturing industry his most important political issue. Automobiles, along with steel, are symbols of U.S. manufacturing. The U.S. president is seeking to bring production and jobs back to the United States by imposing additional tariffs of 25% on automobiles and 50% on steel and aluminum products.
The Japanese side had positioned the Ishiba-Trump meeting as a major turning point in the tariff negotiations. It is necessary for Japan to reexamine whether it sufficiently understood Trump's true intentions.
For Japan, the auto industry, including related companies, is the backbone of the economy, supporting about 5.5 million jobs. The auto industry accounts for about 30% of Japan's exports to the United States, with annual exports reaching about 1.4 million vehicles.
Reaching a comprehensive agreement that includes a reduction in automobile tariffs is a point on which Japan cannot compromise. The upcoming ministerial talks, which will reset the negotiations, will likely not be easy.
Nippon Steel Corp.'s acquisition plan of U.S. Steel Corp. was settled last week. This can serve as a model case in which Japanese investment can help revitalize the U.S. steel industry and create jobs. Japan should continue to explain the significance of possible benefits to be brought by investment in the automobile industry to lead to a resolution of the tariff issue.
For the United States, taking measures against China, a military and economic power that is increasing its hegemonic moves, are a serious challenge. China, which repeatedly resorts to economic coercion, is also using restrictions on exports of rare earths as a weapon.
Rare earths are essential for high-tech products such as electric vehicles and military equipment, and Japan has strengths in processing and smelting technologies of rare earths. By providing technological assistance on rare earths to the United States, Japan should aim to strengthen the supply chain for rare earths and deepen cooperative relations with the United States regarding policies toward China.
The tense situation in the Middle East, with the escalating conflict between Israel and Iran, has further complicated the international landscape. Under these circumstances, it has become more significant to strengthen the alliance by promoting cooperation between Japan and the United States in a wide range of fields. In the tariff negotiations, it is crucial to repeatedly reaffirm this understanding.
(From The Yomiuri Shimbun, June 18, 2025)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
an hour ago
DNP to Acquire Biometric ID Service Provider Rubicon
News from Japan Economy Jun 18, 2025 18:16 (JST) Amsterdam, June 17 (Jiji Press)--Dai Nippon Printing Co. said Tuesday that it will acquire Cayman Islands-based Rubicon SEZC to enter the biometric authentication service business in emerging economies. DNP plans to obtain 75 pct of outstanding shares in Rubicon in July to make the provider of Laxton biometric identity solutions a subsidiary, the Japanese company said at a press conference in Amsterdam. It will be one of the biggest overseas corporate acquisitions by DNP, people familiar with the matter said, adding that the agreed buyout deal is believed to be worth tens of billions of yen. Established in 2004, Rubicon offers biometric services under the Laxton brand, primarily for governments, in more than 50 emerging countries and regions chiefly in Africa. DNP hopes to combine authentication and security technologies it has developed in its smart card business and the Laxton solutions including for national identification and voter verification to produce synergies. [Copyright The Jiji Press, Ltd.] Jiji Press
an hour ago
Hidankyo Calls for Halt to Israel-Iran Conflict
News from Japan Society Jun 18, 2025 18:13 (JST) Tokyo, June 18 (Jiji Press)--The Japan Confederation of A- and H-Bomb Sufferers Organizations, or Nihon Hidankyo, has called for an immediate end to hostilities in the wake of Israel's recent attacks on Iran's nuclear facilities. "We cannot help but feel strong indignation and anxiety" over the attacks, Nihon Hidankyo said in a statement released Tuesday. "Attacks on nuclear facilities should never be tolerated, and hibakusha atomic bomb survivors call for a ceasefire," the statement said. Describing nuclear weapons as insane and intended for annihilation, the group said that "the world must not repeat the tragedies of Hiroshima and Nagasaki," the two Japanese cities devastated by U.S. atomic bombs in the closing days of World War II. It also said that people must reflect on those tragic events, noting that this year marks the 80th anniversary of the bombings. [Copyright The Jiji Press, Ltd.] Jiji Press
Japan Times
an hour ago
- Japan Times
In a first, Lower House opposition parties unite to dismiss finance committee chair
The Lower House finance committee chairman was removed Wednesday after a united opposition front supported a dismissal motion in a bid to hurt the ruling coalition ahead of the upcoming Upper House election. It is the first time ever that a motion against the head of a committee has cleared the Lower House — with a 237-221 vote — reflecting the vulnerabilities of Prime Minister Shigeru Ishiba's minority government. A similar motion has been approved in the Upper House in the past. Tatsunori Ibayashi, a Liberal Democratic Party lawmaker, became the target of the dismissal motion for failing to allow deliberations on a bill to abolish the gasoline tax in the final stage of the parliamentary session. Yukihiko Akutsu, a Constitutional Democratic Party of Japan lawmaker, was chosen to replace him in an election in the Lower House hours later with 238 votes. He is expected to kickstart the debate over the bill in the coming hours. The motion came as it became less likely for the CDP to submit a no-confidence motion — a key arsenal for the opposition — against Ishiba, who reportedly threatened to dissolve the Lower House for a snap election if they did. In the plenary session speech ahead of the voting to dismiss Ibayashi, CDP lawmaker Shuji Inatomi accused the ruling parties of failing to deliberate on the gasoline tax bill, saying they are neglecting the impact of rising prices on people's livelihoods. 'The coalition has taken a very passive stance on this issue, and it's hard to say any concrete discussions to abolish (the provisional gasoline tax rate) have taken place,' Inatomi said. 'The ruling parties have consistently avoided specifying a clear timeline for the abolition.' The motion was submitted Tuesday by six parties — the CDP, Nippon Ishin no Kai, the Democratic Party for the People, Sanseito, the Conservative Party of Japan and the Social Democratic Party. The parties protested Ibayashi's decision to prevent deliberations on an opposition-sponsored bill that would abolish a provisional gasoline tax rate from July 1. The bill — submitted by the six parties with the Japanese Communist Party last week — proposed scrapping two separate taxes often referred to simply as 'gasoline tax.' Parliamentary committee chairpersons have authority over the deliberations in their respective committees. The LDP, meanwhile, called the bill's submission 'unexpected' given the imminent closure of the parliamentary session and the absence of measures to deal with the expected fall of revenues. The provisional tax rate was introduced in 1974, in the aftermath of the first oil shock, by the government of then-Prime Minister Kakuei Tanaka to help pay to maintain roads. It was originally intended as a temporary measure but has stayed in place ever since. This fiscal year, the gasoline tax contributed ¥2.2 billion ($15.2 million) in revenue to state coffers. In December, the LDP, Komeito and the opposition's DPP agreed to abolish the provisional gasoline tax, but when that would be implemented and how to fund it weren't discussed. In April, the three parties signed an additional deal to temporarily lower gasoline prices. The opposition is likely to tout Ibayashi's removal and its commitment to take concrete measures to eliminate the gasoline tax in the upcoming Upper House race.
