Japan to hold out for better trade deal with US

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Japan has indicated that it is ready to make a better deal on trade tariffs with US President Donald Trump, pressing its 25 percent tariff to complete Japanese cars rather than risk at risk of a domestic political response.

Japan, the largest external investor in America and the nearest ally of Asia, Washington and Prime Minister Shigeru Ishiba prioritized to the US discussion table at first In front of other nationsThe

However, the business leaders and analysts have forced business leaders and Ishiba’s own Liberal Democratic Party members to re -calculate him to reject any agreement to threaten the car sector or threaten domestic farmers.

“Although Japan was interested in becoming the first nation of discussion with Washington on tariffs on tariffs, the idea of ​​the emergency has been transferred and emphasized on ensuring that Japan has a good deal,” a Tokyo official said with direct knowledge of the discussion.

Officials said that there was no possibility of an agreement before the late July elections before the Japan’s higher parliamentary elections, and is expected to be difficult for Esiba’s most unpleasant administration already.

Japan’s negotiators, Economy Minister Raosai Akazawa led byTrump has held two meetings with administration officials. A third has been planned for next week. Tokyo’s finance minister Katsunobu Kato is also hoping to resume talks with US Treasury Secretary Scott Besent with the G7 Video Sideline in Canada next week.

Japan’s starting position remains automotive, steel and aluminum imports of 25 percent tariffs and 24 percent of other Japanese products, including “mutual” tariffs, which temporarily decreased at 10 percent “baseline” level.

Impact on our duty operating gains Japan According to the agency and analyst estimates, the current fiscal is expected to be about 2 TN ($ 13.7 billion) in the current fiscal year, although the impact can be offset by the price rise. For the first time in the first quarter, Japan’s economy shrinks.

“Auto and Auto Parts are the largest export sectors from Japan to the United States,” the second Japanese official said. “This means that this US-Japan discussion must deal with this Auto Tariff issue. If we cannot make progress in this sector, I think we cannot reach any sense less.”

Tokyo’s most powerful offers for Washington are greater purchase of US agricultural products, greater market access for US cars and a liquid natural gas pipeline in Alaska, officials said.

However, as a result of the July Upper House elections, Esiba told Parliament that he would not even leave the domestic agricultural industry to win the tariff for automobiles.

“Japan’s position has been tightened. Shigeru Isiba is fighting for his party – and he is fighting for political life. He could not just roll. In the United States in 2021, Japan’s trade surplus was 5 percent.

Experts say how much it gains it Japan Was on top of the White House. Tokyo is dependent on Washington for protection and reports $ 63 billion trading surplus on US products in the fiscal year 2021-220. The Trump administration has accused Japan deliberately weaken Yen, a more complex discussion.

The Esiba unilateral agreement, led by a fragile alliance, fears that the ruler will deepen the LDP crisis. His gambling in a general election Backfire in OctoberAs a result, the party will lose the parliamentary majority for the first time after 20 years.

High house elections in July can further damage, especially if farming lobby thinks it has been betrayed by an agreement that opens the door to flood on US agricultural imports.

According to officials, Japan’s preliminary proposal was to connect the investment levels to the United States, including Japanese companies cut the percentage of tariffs.

The US Treasury and US trade representatives did not immediately respond to any request for comments.

“The problem in Japan is in principle, in principle, it does not want an agreement that looks at speed, but at the same time it cannot depend on the idea that a sophisticated agreement in the United States has patience,” said the official with the direct knowledge of this discussion.

Stephen Nagi, a professor of politics and international studies at Tokyo, said the ECBIA strategy was based on the idea that the US tariff would value its security partnership.

“I think Japan will understand that Trump is committed to a baseline on duty,” Nagi said. “Whatever it does or say, Japan cannot move away from it.”