Japan's Ishiba Challenges Trump on Tariffs Amidst Ongoing Trade Discussions

Prime Minister Shigeru Ishiba engages President Donald Trump in a bid to ease trade barriers ahead of crucial negotiations, focusing on the removal of US tariffs.

TOKYO: Japan's Prime Minister Shigeru Ishiba engaged in a phone call with United States President Donald Trump on Friday, reiterating Japan's stance on tariffs as the two nations prepare for further discussions aimed at easing trade levies.

Japan, a significant US ally and its foremost investor, is currently subject to the standard 10% tariffs levied on most nations. Additionally, it faces higher tariffs on specific goods such as automobiles, steel, and aluminum.

President Trump had previously declared 24% "reciprocal" tariffs on Japan in early April, but later deferred them, along with similar measures on other countries, until early July.

Ishiba noted that their conversation, lasting 45 minutes on Friday morning (Thursday evening in Washington), covered a broad spectrum of topics, including tariffs and economic security.

"I conveyed to him Japan's position on US tariffs," Ishiba stated during a news conference in Tokyo, re-emphasizing "no change to our calls for the removal of tariffs."

"As I've said before, it's not just about tariffs but about investment. There will also be no change to our position that Japan and the US will cooperate on generating employment in the US," he continued.

These comments coincide with the departure of Japan's tariffs envoy, economic revitalisation minister Ryosei Akazawa, for Washington to participate in the third round of talks.

"The series of tariff measures taken by the US are regrettable. We'll strongly demand a review of these measures," Akazawa commented to reporters at Tokyo's Haneda airport.

"But we have to reach an agreement, so it has to be win-win for both sides. We'll listen carefully to the various proposals and ideas of the US side, and look for common ground between the two sides," he added.

According to reports from the public broadcaster NHK and other Japanese media, citing government sources, US Treasury Secretary Scott Bessent will not be part of the upcoming talks.

Akazawa is scheduled to return to Washington on May 30, according to these reports.

President Trump's 25% auto tariffs pose a significant challenge for Tokyo, given that around 8% of all Japanese employment is connected to this sector.

Early this month, the Trump administration also imposed a new 25% import tax on auto components, including engines and transmissions.

During a meeting at the White House in February, Ishiba had assured Trump that yearly Japanese investment in the US would reach US$1 trillion.

"Although the recent US-China and US-UK trade deals indicate that Washington is aiming to de-escalate trade tensions, Japan-US negotiations have made little headway," according to Stefan Angrick from Moody's Analytics.

"Japan's position as the world's largest foreign investor in the US hasn't shielded it from tariff threats, so promising more investment is an unconvincing bargaining chip," he added.