In a firm address to Japan’s parliament on Monday, Prime Minister Shigeru Ishiba made clear that Japan will no longer continue conceding ground in its ongoing tariff negotiations with the United States. His comments come in response to President Donald Trump’s reimposition of a 25% tariff on automobile imports, including those from long-standing ally Japan.

“If Japan concedes everything, we won’t be able to secure our national interest,” Ishiba said, drawing a clear line in the sand.

Auto Tariffs Reignite Old Tensions

The 25% auto tariff is particularly sensitive, given that Japan’s auto sector is a cornerstone of its economy, and was previously protected under verbal assurances from Trump in the 2019 U.S.-Japan trade deal. Ishiba’s remarks reflect Tokyo’s frustration that those promises have not held under renewed U.S. pressure.

“Grave concern remains,” Ishiba said, although he confirmed that Japan does not intend to withdraw from the 2019 agreement.

High-Level Talks Set for Washington

Japan’s chief trade negotiator Ryosei Akazawa and Finance Minister Katsunobu Kato will travel to Washington this week to engage in face-to-face negotiations. The agenda includes:

  • Trade barriers
  • Automotive tariffs
  • Currency exchange volatility

With the yen at a 7-month low, there is growing speculation that the U.S. may press Japan to stabilize the currency as part of a broader deal to reduce the trade imbalance.

Broader Implications

These talks come at a fragile time for global trade as:

  • Trump accelerates a global tariff agenda
  • China retaliates with economic measures
  • European allies grow wary of U.S. protectionism

Japan’s shift from quiet diplomacy to public pushback could reshape the dynamics between two of the world’s largest economies.

Bottom line: Tokyo is done playing defense. If Ishiba’s message holds, Japan is preparing to negotiate from a position of strength — not submission.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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