Japan’s tough stance on US tariffs threatens to stall trade deal
By: bitcoin ethereum news|2025/05/16 17:45:05
0
Share
Japan’s unwavering demand for the elimination of US tariffs on its automobile exports is casting a shadow over ongoing trade negotiations with Washington, raising concerns about the potential derailment of a comprehensive trade agreement. Prime Minister Shigeru Ishiba has clarified that Japan will not accept any trade deal that fails to address the Trump administration’s 25% tariffs imposed on Japanese car imports. These tariffs have significantly impacted Japan’s automotive sector, a cornerstone of its export economy, contributing to a $63 billion trade surplus with the US. Japan, the US’s largest foreign investor and closest ally in Asia, is eager to strengthen ties with Washington. The Prime Minister initially prioritized securing a spot at the negotiating table before other countries. However, Tokyo officials highlight that a deal is now unlikely to be reached before the late July elections for Japan’s upper house of parliament, which are already anticipated to be challenging for Ishiba’s already unpopular government. Japan shifts stance on tariff talks, seeking a favorable deal Ryosei Akazawa, Japan’s minister of economy, led the country’s negotiators and met twice with the Trump administration’s representatives. Tokyo’s finance minister Katsunobu Kato also plans to talk separately with US Treasury Secretary Scott Bessent during a G7 meeting in Canada next week. Despite Japan’s strong desire to be the first country to begin tariff talks with Washington, the focus now is on ensuring a favorable deal, according to a Tokyo official with direct knowledge of the talks. Based on information from officials and analysts concerning Ishiba’s stance, he was forced to reconsider after facing pressure from business leaders and members of his own Liberal Democratic party to reject any deal that endangers the automotive industry or threatens domestic farmers. Japan’s initial stance is to remove all new US tariffs, including a 25% levy on imports of steel, aluminum, and automobiles and a 24% “reciprocal” tariff on other Japanese goods that has since been temporarily lowered to a 10% baseline level. One of Japan’s initial proposals was to tie percentage-point tariff reductions to the amount of Japanese business investment in the US. According to company and analyst estimates, the impact of US tariffs on the operating profits of Japan’s major automakers is expected to be around ¥2 trillion, worth about $13.7 billion, in the current fiscal year that ends in March of next year. However, actions like price increases may mitigate the impact. Japan’s economy contracted for the first time in a year in the first quarter. Japan presses for auto tariff relief According to a second Japanese official knowledgeable about the negotiations, the largest export market from Japan to the US is automobiles and auto parts. This implies that the auto tariff issue must be addressed during this US-Japan negotiation. The official believes that if the nation is not able to come to any consensus, it will not be able to make progress in this area. Among the best offers Tokyo could make to Washington are increased buys of American farm products, greater access to markets for American automobiles, and funds for a project to build a pipeline in Alaska for liquefied natural gas. Nicholas Smith, a Japan strategist at CLSA Securities, stated that Japan is now in a strong position. Shigeru Ishiba has his political career and that of his party to defend; he cannot just roll over. Smith added that cars comprised 81% of Japan’s trade surplus with the US in 2024. If he fails to win lower auto tariffs, PM Ishiba would be on a conveyor belt headed for revolving knives. However, Ishiba has said he will not cut Japan’s domestic agriculture sector, which employs many people, to accept lower auto tariffs. The extent of Japan’s influence in the White House was not known. Reliant on Washington for security, Tokyo had a goods trade surplus of over $60 billion with the US in the 2024-2025 fiscal year. Meanwhile, accusations from the Trump administration that Japan is intentionally undervaluing the yen have further complicated negotiations. Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More Source: https://www.cryptopolitan.com/japans-stance-on-tariffs-could-stall-deal/
You may also like

SBF's little brother turned 225 million into 5.5 billion in one year
Let’s meet the 24-year-old new "stock god" of AI.

In a World of Disruption, How Can Humanities Workers Better Use AI?
This AI in Practice experience is not about teaching you a few magical keywords to memorize; it's more like a methodology.

Anthropic Open Letter: The Hypocritical Sam Altman, PUA Master
OpenAI's extensive PR rhetoric with the Department of War on these issues is either lying or deliberately creating confusion. These facts reveal a pattern of behavior, a pattern I have seen many times in Sam Altman, and I hope everyone can recognize it

On the same day that Kraken's Fedmaster Account was approved, the banking lobbying group immediately launched a counterattack.
Banking Lobby Group Slams Kraken's Approval for "Limited Purpose" Fed Master Account.

Bitwise: This weekend's attack accelerated the on-chain migration of the financial world
The never-ending market has become a global obsession.

Market Downturn: Which Assets Are Worth Watching?
"Whether it can bring benefits to the holder" is one of the key reference indicators.

The real opportunity of stablecoins is not to kill Visa
In the new merchant ecosystem born in the AI era, stablecoins will become the first widely adopted payment infrastructure.

Trump's AI Farce: Insult if You Don't Pay
Dario's all-hands email is full of ad hominem attacks
US & Canada Crypto Tax Season 2026: Official Tax Reporting Support from WEEX × KoinX
Prepare for US & Canada crypto tax season 2026. Learn how to export your WEEX transaction history and access official reporting support through our partnership with KoinX.

Conversation between Tom Lee and "The Big Short" Author: AI has detected bubble signal, crypto correction due to gold liquidity being "siphoned off"
A real bubble occurs when everyone is absolutely certain that "this is definitely not a bubble."

The true reason for Claude's ban, Kraken accessing the Federal Reserve payment system, What is the English community paying attention to?
What Was Trending in the Last 24 Hours?

「Buying the Dip」 of 400,000 BTC: Is $74,000 a Rebound or a Reversal?
BTC price hits a new monthly high.

OpenClaw, Another Batch of Middle Class Jobless
Time will not wait for anyone.

Morning News | Backpack will launch on-chain IPO subscription service; Predict.fun strategically acquires on-chain prediction platform Probable; SoFi partners with Mastercard for strategic cooperation
March 4 Market Important Events Overview

Inventorying the Washington power in the crypto space, who is speaking out for U.S. crypto legislation?
From ideology to ecological initiatives, the lobbying power of American cryptocurrency is undergoing a comprehensive evolution, ushering in a new era of specialized and refined policy games.

650 million dollars, 1.5 billion dollars, 2 billion dollars, the crypto VC landscape has changed!
Homogenized industries are ultimately fragile; only when different species can emerge does the market truly come alive.

Why prediction markets are the largest untapped collateral pool in DeFi
From "gambling" to "financable assets": prediction markets are becoming the next hundred billion collateral pool in DeFi, opening new frontiers of capital efficiency.
500% XAUT Staking, Zero-Fee Gold Futures and $100K Rewards: Why Traders Are Turning to WEEX for Tokenized Gold
Explore WEEX's $100,000+ gold campaign featuring 500% XAUT staking, zero-fee gold contracts, and $30,000 PAXG rewards. Trade tokenized gold today.
SBF's little brother turned 225 million into 5.5 billion in one year
Let’s meet the 24-year-old new "stock god" of AI.
In a World of Disruption, How Can Humanities Workers Better Use AI?
This AI in Practice experience is not about teaching you a few magical keywords to memorize; it's more like a methodology.
Anthropic Open Letter: The Hypocritical Sam Altman, PUA Master
OpenAI's extensive PR rhetoric with the Department of War on these issues is either lying or deliberately creating confusion. These facts reveal a pattern of behavior, a pattern I have seen many times in Sam Altman, and I hope everyone can recognize it
On the same day that Kraken's Fedmaster Account was approved, the banking lobbying group immediately launched a counterattack.
Banking Lobby Group Slams Kraken's Approval for "Limited Purpose" Fed Master Account.
Bitwise: This weekend's attack accelerated the on-chain migration of the financial world
The never-ending market has become a global obsession.
Market Downturn: Which Assets Are Worth Watching?
"Whether it can bring benefits to the holder" is one of the key reference indicators.