Ishiba calls Trump's tariff decision 'truly regrettable'
Despite Trump's decision, which was conveyed to Japan in a letter, Ishiba said the tariff rate is lower than the U.S. president had threatened and opens the way for future bilateral negotiations between the longtime allies.
Speaking during a tariff task force meeting, Ishiba said the government will not waver in its defense of national interests in future rounds of talks, pledging to do all it can to mitigate the impact of the imminent tariff hike on the export-oriented Japanese economy.
"We will continue to engage in negotiations with the United States to explore the possibility of reaching a mutually beneficial deal while protecting our national interests," Ishiba told the meeting.
Bilateral tariff talks, including a face-to-face summit, have not resulted in substantive progress.
While Trump has turned to tariffs to fix what he sees as imbalanced trade, a 25 percent levy on imported cars has been seen as especially detrimental to Japan, which relies heavily on the likes of Toyota Motor Corp and Honda Motor Co.
"Unfortunately, we have yet to reach an agreement as there are differences between us. Japan has been avoiding making easy concessions while demanding and protecting what is needed," Ishiba said.
Ahead of the July 20 House of Councillors election, he suggested that the bilateral negotiations, mostly conducted by his aide and chief negotiator Ryosei Akazawa, have helped to keep the U.S. tariff rate for Japan "effectively on hold."
Trump had threatened to impose tariffs of 30 or 35 percent, raising the stakes ahead of the end of a three-month pause on "reciprocal" tariffs on Wednesday. The newly set 25 percent levy is scheduled to take effect on Aug 1.
"Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump wrote to Ishiba, with the president sending a similar letter to South Korea, another U.S. ally.
"These Tariffs may be modified, upward or downward, depending on our relationship with your Country," Trump said.
The United States is a major trading partner for Japan, which posted a trade surplus of roughly 8.6 trillion yen with the world's largest economy in 2024. Automobiles accounted for more than a quarter of Japan's total exports to the United States by value, according to government data.
Tokyo has been urging Washington to focus on what the longtime allies can achieve together through investment, rather than relying on tariffs to address the U.S. trade deficit with Japan.
In addition to automobiles, rice has recently become a target of Trump's criticism. He claims that Japan is not importing U.S. rice -- an assertion Ishiba has rejected.
Trump's tariff threat comes in the middle of the 17-day campaign period for the upper house election, with Ishiba's premiership hanging in the balance. Media polls show his ruling coalition faces an uphill battle to retain majority control of the chamber.
"It's unacceptable," ruling Liberal Democratic Party policy chief Itsunori Onodera said at a party meeting to discuss the U.S. tariffs. "It's extremely rude to send only a letter to an allied nation. I strongly resentment it."
U.S. Treasury Secretary Scott Bessent, the point man for the tariff negotiations, has signaled a trade deal with Japan is unlikely to be sealed any time soon, citing complications surrounding the upper house election.
© KYODO
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