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Yomiuri Shimbun
5 days ago
- Business
- Yomiuri Shimbun
Tariff Negotiations: Time To Deepen Japan-U.S. Cooperation through Industrial Collaboration
New forms of industrial collaboration between Japan and the United States are taking shape in connection with the two countries' tariff negotiations. Tokyo and Washington should deepen cooperation in a wide range of fields, and it is hoped that such efforts will lead to a review by the United States of its high tariff policy. Ryosei Akazawa, minister in charge of economic revitalization, held a fourth round of ministerial-level talks with U.S. Treasury Secretary Scott Bessent and other officials during his visit to the United States. 'I was able to confirm that the discussions are progressing toward an agreement,' Akazawa said afterward. The two sides will accelerate the talks with a view to reaching an agreement between the Japanese and U.S. leaders on the sidelines of the Group of Seven summit in mid-June, he said. A crucial theme in the negotiations is concrete measures to deepen cooperation on economic security. In his March speech to Congress, U.S. President Donald Trump expressed his intention to resurrect the nation's shipbuilding industry to enhance the defense industry. Based on this, Japan is reportedly considering such specific measures as joint development and production of new icebreakers based on the technology used in Japan's icebreaker Shirase, and the joint manufacturing of vehicle carriers utilizing Japanese designs and parts. The United States was once the largest shipbuilder in the world. However, China now accounts for 70% of the global market share for building new vessels. The U.S. share is small, and there is considerable room for cooperation with Japan, which still has competitive strength. It is also important for the two countries to cooperate in the field of rare earths, which are essential for the production of electric vehicles and military equipment. China used restrictions on rare earth exports as a weapon in an exchange of retaliations over Trump's tariffs. As a result, the United States is believed to have a heightened sense of crisis. The Japanese government is considering providing technical support for the processing and smelting of important minerals such as rare earths. Nippon Steel Corp.'s plan to acquire U.S. Steel Corp., a major steel company in the United States, may also provide tailwind for the tariff negotiations. Trump gave a speech in a suburb of Pittsburgh on Friday and welcomed the move, saying, 'We are going to have a great partner.' He proudly said, 'There has never been a $14 billion [about ¥2 trillion] investment in the history of the steel industry in the United States of America.' The global market is flooded with cheap Chinese steel products. Injecting Nippon Steel's advanced technology and capital into U.S. Steel would enhance the U.S. steel company's competitiveness. It will also help strengthen domestic production, which the United States considers important for economic security. However, it was pointless for Trump to announce in his speech that he would raise additional tariffs on steel and aluminum products from 25% to 50%. To build a new economic relationship between Japan and the United States, a major condition is that the United States must first reconsider reciprocal tariffs and high tariffs on such products as vehicles and steel products. The United States needs to be aware that the development of its manufacturing industry also depends on whether it revises its high tariff policy. (From The Yomiuri Shimbun, June 1, 2025)
Yomiuri Shimbun
23-05-2025
- Business
- Yomiuri Shimbun
Japanese Govt Eyes U.S. Cooperation in Reviving Shipbuilding Industry
Yomiuri Shimbun file photo Icebreaker Shirase leaves a Maritime Self-Defense Force base in Yokosuka, Kanagawa Prefecture, in November 2024. The government will launch measures to revive the shipbuilding industry, which has been declining for a long time, according to sources. It will support the private sector in the construction and repair of shipbuilding docks and in starting businesses overseas. China has an overwhelming share of the world's shipbuilding market, and economic security concerns are growing in the international community. As the administration of U.S. President Donald Trump regards strengthening the country's shipbuilding capability as one of its important policies, Japan hopes to promote cooperation with the United States in this area and use it as a bargaining chip in the upcoming tariff negotiations. The government aims to support the domestic industry and promote cooperation with the United States at the same time. It will include specific measures in its Basic Policy on Economic and Fiscal Management and Reform, also known as the 'big-boned policy,' and secure the necessary budget. As for domestic measures, it will support domestic investment, technology development and establishing data infrastructure in the shipbuilding industry through the Economic Security Promotion Law. This is in consideration of the fact that shipbuilding is a dual-use industry, which develops and produces vessels for both private and military purposes. To strengthen domestic shipbuilding capability, which is currently insufficient to meet the recent increase in demand, the government will support to construct new shipbuilding docks by reviving unused docks and dockyards. The government will also increase the budget related to green transformation to support the building of ships that include next-generation vessels fueled by blue ammonia. Blue ammonia is produced from fossil fuel in which the carbon dioxide emissions generated during the process are captured and stored. The government will also help Japanese companies construct large-scale docks overseas and start businesses in those locations. As for possible Japan-U.S. cooperation, the government is considering a 'Japan-U.S. fund for reviving the shipbuilding industry.' It will propose joint construction of blue ammonia ships and vehicle carriers, hoping to utilize Japan's design capabilities and Japan-made manufacturing parts. It will support Japanese and U.S. companies to construct dockyards in the United States. Based on the technology of Japanese icebreaker Shirase, it plans to jointly develop and produce new icebreakers and cooperate in repairing warships with the United States. It also aims to establish a supply chain between Japan and the United States to avoid too much dependence on China. China currently has a 70% share of newly built ships and 90% share of ship repair. Japan had a 50% share of newly built ships in the early 1990s, but currently has only 10%. As Japan depends on China for its supply of ships, its maritime transportation may be affected in a contingency. Japan aims to strengthen its economic security by reviving its shipbuilding industry. The Trump administration also aims to revive the U.S. shipbuilding industry. It has already started to eliminate Chinese ships; the U.S. government said it would collect fees from China-made ships when they enter U.S. ports. Japan and the United States were to hold their third ministerial meeting about the tariffs on Friday. Japan intends to convey to the U.S. government its intent to cooperate in reviving both countries' shipbuilding industries, hoping to extract concessions in the negotiations.
