Japan industry heavyweights urge results over speed in tariff talks

The Mainichi

6 hours ago

TOKYO (Kyodo) -- Some Japanese companies on Tuesday urged the government to focus on the outcome of U.S. tariff negotiations over quick results, after a meeting between Prime Minister Shigeru Ishiba and President Donald Trump ended without a deal.
The two leaders met on Monday on the sidelines of the Group of Seven leaders' summit in Canada as Japan continues to urge the United States to rethink its tariff policy, implemented on a myriad of goods from cars and auto parts to steel and aluminum.
"We hope they will take their time to keep negotiating. The content of the results matters more than how quickly an agreement is reached," an executive from a major Japanese automaker said.
On April 3, the Trump administration imposed a 25 percent tariff on imported vehicles.
"(Japanese automakers) will have to hike prices if stock runs out, and may fall into a disadvantage regarding price competitiveness," according to a source from an automaker. There are concerns that the number of cars imported into the United States from Japan prior to the tariffs is running low.
The United States has given Japan and other countries a 90-day reprieve from what it calls "reciprocal" tariffs, with a deadline set for July 9. But Treasury Secretary Scott Bessent has hinted that it could be extended for key partners engaged in negotiations in "good faith."
Japan's chief tariff negotiator Ryosei Akazawa has repeatedly flown to Washington to iron out differences with his U.S. counterparts.
The 25 percent tariff on autos is seen as a particular sticking point, as the auto sector forms the backbone of the Japanese economy and the United States is a critical market for companies like Toyota Motor Corp.
Those Japanese automakers, however, have been ramping up investment and production in the United States over the years, a point that the Japanese side has been seeking to get across to Trump.
"Even if Japan emphasizes its achievements in direct investments in the United States, it is unlikely to be a negotiating card for President Trump, who wants to demonstrate to the American people a clear success," said Kaoru Sugai, an economist from Mizuho Research and Technologies Ltd.
"It is likely that the effects of tariffs on specific goods, like those that have already been imposed on automobiles, will gradually become apparent, with concerns that it may pressure profits for respective industries if negotiations are prolonged," he added.