In response to the US announcement of a 25% tariff on Japan, Japanese Prime Minister Shigeru Ishiba held a meeting at the Prime Minister’s Office this morning (8th). Ishiba said that the agreement was reached because the Japanese side avoided making rash compromises. He also said that the tax rate mentioned in the notification letter was not the 30% or 35% previously proposed by US President Trump, but almost maintained the current tax rate, and the deadline of the agreement was extended to August 1.
Ishiba announced at the meeting of the Government Comprehensive Countermeasures Headquarters that he had received a letter from the US government notifying that a 25% tariff would be imposed on all Japanese exports from August 1. He said that there are still issues that Japan and the United States cannot reach a consensus on, so no agreement has been reached. This is because the Japanese side avoids making rash compromises and strictly controls the negotiation process. However, the discussions between the two sides have made progress.
Ishiba told reporters at the Prime Minister’s Office this morning that the Japanese government’s position is not to compromise easily. It will aim for the new deadline of August 1 and strive to reach an agreement that is beneficial to both Japan and the United States.
On the 1st of this month, Trump said that he doubted whether an agreement could be reached in the tariff negotiations with Japan, and once again expressed his dissatisfaction with the trade deficit, hinting that Japan might impose tariffs of about 30% to 35% on its exports to the United States. Trump said, “I will write them a letter. They have to pay 30%, 35%, or a rate determined by us.” Ishiba therefore interpreted it positively, believing that it would not reach 30% or 35%. On “Liberation Day” in April, the United States announced that it would impose a 24% tariff on Japan, which was increased by 1% this time. The biggest obstacle in the tariff offensive and defensive battle between the two sides is the automobile tariff.
