Japan PM Ishiba draws the line at securing national interests in Trump trade talks

Japanese Prime Minister Shigeru Ishiba has said he will focus on his country’s safety and national interests over meeting the US government’s demands in recent trade talks.

Talks with the European Union have hit several dead ends, particularly over the US tariffs on steel and aluminum and the refusal of the EU to open its agricultural markets.

France and Germany have voiced frustration over what they describe as “aggressive” US tactics. In South America, Brazil has cautiously entered negotiations. Canada and Mexico are pushing back against new tariff threats. Canadian officials described the latest round of talks as “strained.”

In Asia, the response has been mixed. South Korea has shown more flexibility and recently agreed to modest agricultural concessions in exchange for the easing of auto tariffs. On the other hand, China is in a tariff war with the United States.

Japan, while willing to cooperate with America, will not sacrifice its interests to make peace.

Ishiba prioritizes national interests

In a parliamentary session on April 21, Ishiba, Japan’s prime minister stated, “If Japan concedes everything, we won’t be able to secure our national interest.”

Ishiba said this in relation to the ongoing trade negotiations between Japan and the United States following the imposition of a 25% tariff on imported vehicles, including those from Japan. The tariff has been in effect since April 3, and the US government also placed additional duties on auto parts, which are set to take effect in May.

In recent discussions, Ishiba has voiced serious concerns over the inconsistency between the 2019 bilateral trade agreement and the new automobile tariffs imposed by the US.

The 2019 agreement includes verbal assurances from the then-President, who also happened to be Trump, that Japan would be exempt from national security tariffs on car imports.

“We will continue to convey our stance (to the US) from this standpoint,” Ishiba said, although he said Japan has no plan to terminate the 2019 agreement altogether.

Japan’s top trade officials, including its trade negotiator Ryosei Akazawa and its Finance Minister Katsunobu Kato, are scheduled to visit Washington for discussions about trade barriers and currency exchange rates.

The yen’s recent decline to a seven-month low of 140.615 yen has raised concern that the US could pressure Japan to stabilize the currency and reduce the US trade deficit.​

Japan’s domestic priorities are non-negotiable

While Japan is open to compromise during the discussions, Ishiba has made it clear that certain areas important to Japan’s national interest will be protected.

One of these areas is agriculture. The US has criticized Japan’s high tariffs on agricultural imports, such as rice, and regards them as unfair trade barriers. Ishiba is defending his country’s position by insisting that those measures are essential for protecting Japanese agriculture and ensuring consumer safety.

That’s not to say Japan is not exploring other possible areas for compromise. For example, there are reports that Japan may consider increasing imports of US rice and soybeans or relaxing safety standards for imported cars to advance the tariff talks.

Japan’s financial contributions to US military bases have also been mentioned during trade discussions.

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