Is Shigeru Ishiba mulling resignation over Donald Trump's ‘massive' trade talks? Japanese prime minister says...
President Donald Trump announced a long-awaited trade agreement with Japan on Tuesday night, a framework between allies and major trading partners that appeared elusive just weeks ago.
In a post on Truth Social posted on Wednesday Asian hours, US President Donald Trump said he had just completed a "massive" deal with Japan that included $550 billion in investments into the United States.
'We just completed a massive Deal with Japan, perhaps the largest Deal ever made,' Trump said on Truth Social.
As part of the deal, US importers will pay 15% 'reciprocal' tariffs on Japanese goods exported to the United States. Japan also will invest $550 billion dollars into the United States, the president said.
Trump added that the US 'will receive 90% of the profits.' He did not specify how those investments would work or how profits would be calculated. No official term sheet has been released.
'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it. Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%,' Trump posted.
Following Donald Trump's announcement of a trade deal with Japan, Prime Minister Shigeru Ishiba expressed his readiness to meet or speak by phone with Trump after receiving a briefing on the details from Japan's top trade negotiator, Ryosei Akazawa, who is currently in Washington for trade discussions.
Ishiba told reporters, "I can't say until I scrutinise the outcome of the agreement," when asked how the deal with Washington might influence his decision to resign.
The Yomiuri newspaper reported that Ishiba intends to visit the United States by the end of July to hold talks with President Trump. Japan's chief negotiator Akazawa is engaged in the eighth round of talks in the US.
In explaining his decision to stay on, Ishiba has stressed the need to avoid creating a political vacuum as Japan faced challenges including difficult trade negotiations with the US that would have a huge impact on the export-reliant economy.
"I will stay in office and do everything in my power to chart a path toward resolving these challenges," Ishiba said in a news conference on Monday, adding that he intended to speak directly with Trump as soon as possible and deliver tangible results.
Ishiba is expected to meet ruling party heavyweights later on Wednesday for discussions on the election outcome.
The recent upper house elections in Japan, held on Sunday, have significantly weakened Ishiba's domestic standing. Although the prime minister has cited the trade talks as a reason for wanting to remain in office, the conclusion of an agreement with the US seems likely to pave the way for his resignation following the historic electoral defeat.
Following the election loss, support for Shigeru Ishiba's administration has plunged with a major poll showing his approval rate slightly above 20%, a level that's historically been considered dangerously low for an administration to continue.
Ishiba is facing growing opposition from within his Liberal Democratic Party for his vow to stay in power despite the ruling coalition's bruising defeat in Sunday's upper house election.
According to Yomiuri, Ishiba told his close associates on Tuesday evening that he would explain how he would take responsibility for the election loss once a solution was reached on trade negotiations.
Before Donald Trump's declaration of 15% tarrif deal with Japan, US Treasury Secretary Scott Bessent suggested the two sides may be getting closer to an agreement. The talks are 'going very well,' Bessent said on Fox Business on Tuesday, adding that a historic election loss for Ishiba 'has given them a bit of impetus to get things done over the next couple of months.'
'They've really come to the table,' Bessent said. 'I wouldn't be surprised if we are able to iron out something with Japan pretty quickly.'
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