Japan: "No Meaning in Negotiating with the US Without Eliminating 25% Auto Tariff"

Korea Economic Daily

Summary

Japan emphasized that trade negotiations with the US are meaningless without the elimination of the 25% auto tariff.
Nikkei reported that Japan might change its stance to demand a reduction instead of elimination of the tariff.
Japan is considering proposals such as increasing imports of US corn and soybeans to gain concessions from the US.

Minister Akazawa Reaffirms "Position to Eliminate Tariffs"

Nikkei Reports "May Demand Reduction Instead of Elimination of Auto Tariff"

Japan emphasized that there is no point in bilateral trade negotiations with the United States unless the US eliminates the 25% tariff on Japanese automobiles.

According to foreign media such as Reuters on the 20th (local time), Japan's chief trade negotiator, Ryosei Akazawa, stated that Japan's position of requesting the US to eliminate tariffs remains unchanged. He also said that if there is a risk of Japan's interests being compromised, they will not rush into a trade agreement.

Japan's Kyodo News reported that Minister Akazawa will go to Washington this week to attend the third US-Japan meeting. Kyodo News reported that US Trade Representative Jamison Greer will attend the meeting, while Treasury Secretary Scott Besant will not.

Japan will face a 24% tariff rate if it fails to negotiate with the US by early July.

Japanese policymakers and ruling party members have said that negotiations with the US are meaningless unless the 25% tariff on auto imports is eliminated, considering the economic importance of the automobile industry in Japan.

South Korea also saw its auto exports to the US plummet by nearly 20% in April when the 25% tariff on automobiles began to be applied, making the elimination of auto tariffs one of the biggest concerns in trade negotiations.

Japan was the first to start bilateral trade negotiations with the US, but like South Korea, it is being delayed. The US first concluded negotiations with the UK, a trade surplus country. China, which maintained a tough stance on Trump's tariffs, agreed to a 90-day truce.

Last week, the Nikkei newspaper reported that Japan might weaken its demand to eliminate US tariffs and instead ask for a reduction.

A source familiar with the negotiation situation told Reuters that Japan is considering a series of proposals to gain concessions from the US, including increasing imports of US corn and soybeans, cooperating in shipbuilding technology, and revising import car inspection standards.

Guest reporter Kim Jung-ah kja@hankyung.com