Japanese Prime Minister Rjosei Akazawa is leading a negotiation team back to Washington with a clear mission – to persuade the U.S. administration to swiftly lower high tariffs on Japanese car imports. The current 27.5% duty is expected to drop to 15% under a planned executive order by President Trump.


📉 Pushing for Immediate Action

Alongside Akazawa, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi is also urging the U.S. to issue the executive order without delay. Japan warns of the risk of “tariff accumulation” – a combination of multiple duties that could severely impact its exports.


Last week, Prime Minister Ishiba stated that Japan exported more than 4.3 million products to the U.S. and is preparing countermeasures to soften the blow of the high tariffs. Although Japan initially pushed for full tariff elimination, it eventually agreed to a compromise – a reduction to 15%.


🚗 A Deal Similar to the U.K. Agreement

Akazawa acknowledges that the tariff cut may take time but hopes the U.S. will agree to a deal similar to the one recently struck with the United Kingdom. Japan is eager for clarity, aiming for the new tariffs to take effect by August 7. Originally, they were expected to begin on August 1.


💬 “Reducing Tariffs Would Ease Uncertainty”

According to Hayashi, President Trump’s executive order would reduce uncertainty around U.S. trade policy and lower the risk of economic downturn in Japan. He stressed that high tariffs have dealt a severe blow to companies like Toyota and Honda, whose performance heavily depends on the American market. Japan insists on swift implementation of the revised agreement.


📢 Calls for Formal Deal and Stimulus Measures

Yoshihiko Noda, head of Japan’s Constitutional Democratic Party, proposed that the trade agreement between the U.S. and Japan be formally signed in a public setting – ideally at a bilateral summit. He also urged the Japanese government to prepare an economic stimulus package to mitigate any “tariff-related impacts.” However, he noted that PM Ishiba has not mentioned any additional budget plans for fiscal year 2025/26.

Former PM Ishiba has also urged government officials to “take all necessary steps” to counter the effects of Trump’s tariffs, citing economists' warnings that the export-driven economy is showing signs of slowing down.


🤝 Deal in Exchange for U.S. Product Purchases

Just one day after progress was made in the tariff negotiations, the U.S. announced that Japan agreed to purchase $8 billion worth of American agricultural and food products – including bioethanol, fertilizers, corn, and soybeans. Japan also committed to significantly increasing purchases of U.S.-made defense equipment, including plans to buy around 100 Boeing aircraft.


#Japan , #usa , #TrumpTariffs , #Geopolitics , #TradeWars

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