Japanese Prime Minister Shigeru Ishiba reaffirmed his goal of eliminating all tariffs in trade negotiations with the United States. In an interview on a Fuji Television morning program, Ishiba highlighted that discussions between Japan and the U.S. have made progress, noting that the relationship with U.S. President Donald Trump is “surprisingly good.” Despite this, Ishiba expressed his desire for a zero-tariff agreement, pointing out that the recent trade deal between the U.S. and the United Kingdom, which reduces duties on British car exports while maintaining a 10% baseline tariff, is one model. However, he stressed that Japan should aim for the complete removal of tariffs, as high auto import levies could increase car prices for U.S. consumers.
Ishiba argued that reducing tariffs would be beneficial for both the U.S. and Japan. He suggested that lowering tariffs would help improve the American economy, making cars more affordable for U.S. buyers. Currently, Japan’s automobile exports to the U.S. are subject to a 25% tariff, while Japan also imposes a reciprocal 24% tariff on American goods. Ishiba emphasized that by eliminating these tariffs, trade could become more beneficial and efficient for both nations.
On the topic of Japan’s domestic economy, Ishiba acknowledged discussions surrounding a potential reduction in the consumption tax. However, he raised concerns about the long-term impact of such a move on Japan’s finances, questioning whether a sudden tax reduction would be sustainable. He emphasized the importance of finding alternative methods to assist those in need without compromising the nation’s fiscal health.
As trade negotiations continue, Ishiba’s stance reflects Japan’s broader goals of strengthening its economic position through mutually beneficial agreements while ensuring that any domestic economic policies are carefully considered to avoid adverse effects on public finances. The push for zero tariffs is part of Japan’s effort to enhance its trade relations with the U.S., securing better access for Japanese goods while advocating for economic policies that support long-term growth.
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