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Japan says in no rush for deal ahead of levy talks

By JIANG XUEQING in Tokyo | China Daily | Updated: 2025-04-16 09:59
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A container ship is docked at a cargo terminal in Tokyo on April 9. HIRO KOMAE/AP

Japanese Prime Minister Shigeru Ishiba has signaled a tough negotiating stance ahead of tariff talks with the United States, making it clear that Tokyo will not be rushed into an agreement or make major concessions.

"We do not intend to make one compromise after another just to conclude negotiations quickly," Ishiba said on Monday, adding the government will "take the necessary time and make utmost efforts to secure the best outcome".

Ryosei Akazawa, Japan's minister in charge of economic revitalization and chief tariff negotiator, will visit Washington from Wednesday to Friday to meet US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.

"We intend to approach this with the most thorough and detailed analysis possible," Ishiba said of the upcoming talks.

In preparation for the negotiations, the Japanese government has started identifying "nontariff barriers". The review will target regulations and subsidy programs that the US deems barriers to trade, with particular focus on Japan's vehicle certification systems and its distribution system for agricultural products.

US President Donald Trump has announced a 24 percent "reciprocal tariff" on Japanese goods. While it has been put on hold for 90 days, a baseline 10 percent levy remains in place, alongside the additional 25 percent tariffs on automobiles, steel and aluminum.

"We are well aware that it has the possibility, or risk, to fundamentally change the global economic order," Ishiba said. "At such a time, we need to consider what response is in the best interests of our country and in the best interests of the world as a whole."

A Kyodo News survey released on Sunday found that 84.2 percent of respondents in Japan believe the US tariff hikes will undermine their livelihoods, while 73.9 percent view the policy as unjustified.

Questioned in the lower house of parliament on Monday about his administration's response, Ishiba ruled out retaliatory measures for now, saying escalation would not be in Japan's national interest. He also expressed hesitation about taking the issue to the World Trade Organization, opting instead for bilateral negotiations with the US.

United response

At the session of the Budget Committee of the House of Representatives, Yoshihiko Noda, leader of the opposition Constitutional Democratic Party of Japan, voiced support for a united response.

"I share the prime minister's view that this is a national crisis," Noda said, arguing that Japan should challenge the US over violations of international trade rules and its commitments under the US-Japan Trade Agreement.

Hidetoshi Tashiro, chief economist at Japanese consultancy Infinity LLC, warned that Washington's "reciprocal tariffs" and additional duties on automobiles will deal a severe blow to Japan's auto industry, pushing some companies to the brink of collapse.

"Based on a preliminary calculation on April 3, Toyota's profits are projected to fall by 27 percent, Honda's by 28 percent, Mazda's by 139 percent, and Nissan's by a staggering 300 percent," Tashiro said.

"This means Mazda and Nissan are likely to post losses in their financial reports. For Nissan especially, the situation is dire — this is a critical moment that could determine the company's survival."

Beyond the damage to Japan's economy, Tashiro said the US tariff measures will fuel inflation in the US and send shock waves through global trade.

"This policy will cause a marked contraction in global trade volume," he said. "Export production worldwide will decline. These tariffs are entirely irrational — not just for the global economy, but even for the US economy itself."

Also on Monday, Ishiba had a phone conversation with Singapore's Prime Minister Lawrence Wong, discussing issues including the effects of US tariff measures on the global economy and the multilateral free trade system.

He said the situation is grave for Japanese companies operating in Southeast Asia, stressing the importance of maintaining close communication with countries in the region.

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