Tariff talks with U.S. a mix of slow progress, ever-present uncertainty
Both signs of progress and further uncertainty emerged in Japan's tariff negotiations with the United States, as the pace of high-level talks increased and a court order put most of the U.S. levies on shaky ground.
Following Prime Minister Shigeru Ishiba's second phone call in a week with U.S. President Donald Trump on Thursday , Ryosei Akazawa, Japan's chief tariff negotiator, reaffirmed that Japan's stance hasn't changed in calling for the tariffs to be eliminated.
'We intend to maintain that stance while also doing our utmost to find common ground,' Akazawa, who is also economic revitalization minister, told reporters after landing in Washington on Thursday. 'We'd like to proceed with confidence in the negotiations.'
On Wednesday, the U.S. Court of International Trade in Manhattan ruled Trump's 'reciprocal' tariffs to be unlawful , arguing the president had exceeded his authority to impose tariffs by invoking the International Emergency Economic Powers Act.
The ruling came as a major blow to Trump's tariff plan, and added an extra layer of uncertainty as dozens of countries anxiously moved forward in trade negotiations with Washington.
Wall Street opened higher on Thursday as the court order blocked most of Trump's tariffs, but fell back later in the day after a federal appeals court granted a temporary stay allowing the tariffs to remain in place during the appeals process.
'At this point, no final judicial decision has been made,' Akazawa said, noting the levels of escalation in the U.S. court system. 'Going forward, we intend to continue gathering the necessary information thoroughly, conducting proper analysis and responding appropriately.'
Akazawa has suggested the possibility of buying more defense equipment from the U.S. as a way of reducing Japan's trade surplus with the U.S. |
JIJI
Bruce Aronson, a senior adviser at New York University's U.S.-Asia Law Institute, doubts the court decision will be very meaningful for Japan, as the 25% tariffs on automobiles, auto parts, steel and aluminum were not covered by the court order, and even the tariffs in question can be replaced by the Trump administration using other statutes.
'On first impression, you might think it helps strengthen Japan's hand, because the court ruled the 10% and the reciprocal tariffs are both illegal. On the other hand, at least some of them could be replaced by non-emergency tariffs over time,' Aronson said. 'Japan is not entirely off the hook for some of these things.'
Japan continued to sweeten the pot in negotiations with the United States.
It might offer aid in shipbuilding and buying more semiconductors from the U.S. as part of the negotiation, according to multiple news reports. Several reports after Ishiba and Trump's earlier call last week indicated the U.S. president might have pitched the F-47, Boeing's next-generation fighter, to Japan.
Akazawa declined to comment on whether the jets had become a topic of discussion in the trade talks when asked by The Japan Times on Monday, while stressing Tokyo's stance that defense issues and trade talks should remain separate .
On Thursday, he did suggest the possibility of buying more defense equipment from the U.S., saying that could be a way to reduce Japan's trade surplus with the U.S.
He is set to hold a fourth round of high-level tariff talks with U.S. officials, meeting Treasury Secretary Scott Bessent on Friday morning in Washington.
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